,,ii #aae? ,,congress #b;d ,session ,s4 #cgha ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,decemb] #ai1 #bjah ,mr4 ,portman 7= himself & ,mr4 ,c>d97 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to re=m retirem5t provisions1 & = o!r purposes4 #a4 ,%ort title1 etc 7a7 ,%ort title ,?is ,act may be cit$ z ! ,retirem5t ,security & ,sav+s ,act ( #bjah4 7b7 ,am5dm5t ( #aihf ,code ,except z o!rwise expressly provid$1 :5ev] 9 ?is ,act an am5dm5t or repeal is express$ 9 t]ms ( an am5dm5t to1 or repeal (1 a section or o!r provision1 ! ref]5ce %all be consid]$ to be made to a section or o!r provision ( ! ,int]nal ,rev5ue ,code ( #aihf4 7c7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title1 etc4 ,,title ,i--,exp&+ cov]age & increas+ retirem5t sav+s ,sec4 #aja4 ,secure def]ral arrangem5ts4 ,sec4 #ajb4 ,facilitat+ automatic enrollm5t4 ,sec4 #ajc4 ,cr$it = employ]s ) respect to modifi$ safe h>bor requirem5ts4 ,sec4 #ajd4 ,expansion ( sav]'s cr$it4 ,sec4 #aje4 ,qualifi$ ca% or def]r$ arrangem5ts mu/ all[ long-t]m employees work+ m ?an #ejj b less ?an #a1jjj h\rs p] ye> to p>ticipate4 ,sec4 #ajf4 ,sep>ate application ( top heavy rules to def9$ contribution plans cov]+ "p-"t employees4 ,sec4 #ajg4 ,opportunity to claim ! sav]'s cr$it on =m #ajdj;,,ez4 ,sec4 #ajh4 #fj-;day rollov] to inh]it$ individual retirem5t plan ( nonsp\se b5efici>y4 ,sec4 #aji4 ,increase 9 age = requir$ beg9n+ date = m&atory di/ributions4 ,sec4 #aaj4 ,updat+ ( mortality tables = m9imum requir$ di/ributions4 ,sec4 #aaa4 ,increase 9 cr$it limitation = small employ] p5sion plan />tup co/s ( c]ta9 employ]s4 ,sec4 #aab4 ,cr$it = re-enrollm5t4 ,sec4 #aac4 ,treatm5t ( /ud5t loan paym5ts z elective def]rals = purposes ( mat*+ contributions4 ,sec4 #aad4 ,treatm5t ( qualifi$ retirem5t plann+ s]vices4 ,sec4 #aae4 ,all[ additional nonelective contributions to simple plans4 ,sec4 #aaf4 ,re=m ( ! m9imum p>ticipation rule4 ,sec4 #aag4 ,expansion ( ,employee ,plans ,compliance ,resolution ,sy/em4 ,sec4 #aah4 ,enhancem5t ( #djc7;b7 plans4 ,sec4 #aai4 ,eligibility = p>ticipation 9 retirem5t plans4 ,sec4 #abj4 ,small imm$iate f9ancial inc5tives = contribut+ to a plan4 ,sec4 #aba4 ,index+ ,,ira cat*-up limit4 ,sec4 #abb4 ,high] cat*-up limit to apply at age #fj4 ,,title ,,ii--,pres]vation ( income ,sec4 #bja4 ,qualify+ longevity annuity contracts4 ,sec4 #bjb4 ,remove requir$ m9imum di/ribution b>ri]s = life annuities4 ,sec4 #bjc4 ,elim9at+ a p5alty on p>tial annuitization4 ,sec4 #bjd4 ,insurance-d$icat$ ex*ange-trad$ funds4 ,,title ,,iii--,simplification & cl>ification ( retirem5t plan rules ,sec4 #cja4 ,review & report to ! ,congress relat+ to report+ & disclosure requirem5ts4 ,sec4 #cjb4 ,consolidation ( def9$ contribution plan notices4 ,sec4 #cjc4 ,p]=mance b5*m>ks = asset allocation funds4 ,sec4 #cjd4 ,p]mit nonsp\sal b5efici>ies to roll assets to plans4 ,sec4 #cje4 ,def]ral agreem5ts4 ,sec4 #cjf4 ,simplify+ #djb7;f7 notices4 ,sec4 #cjg4 ,guidance relat$ to c]ta9 ov]paym5t rec\pm5t practices4 ,sec4 #cjh4 ,treatm5t ( cu/odial acc\nts on t]m9ation ( section #djc7;b7 plans4 ,sec4 #cji4 ,p]mit plans to use base pay or rate ( pay calculation4 ,sec4 #caj4 ,ro? ,,simple ,i,r,as4 ,sec4 #caa4 ,r$uction 9 excise tax on c]ta9 accumulations 9 qualifi$ retirem5t plans4 ,sec4 #cab4 ,cl>ification ( cat*-up contributions ) respect to sep>ate l9es ( bus9ess4 ,sec4 #cac4 ,cl>ification ( sub/antially equal p]iodic paym5t rule4 ,sec4 #cad4 ,cl>ification ( treatm5t ( di/ributions ( annuity contracts4 ,sec4 #cae4 ,cl>ification reg>d+ elective def]rals4 ,sec4 #caf4 ,tax treatm5t ( c]ta9 nontrade or bus9ess ,,sep contributions4 ,sec4 #cag4 ,all[ c]ta9 plan transf]s & m]g]s4 ,sec4 #cah4 ,exception f requir$ di/ributions :]e aggregate retirem5t sav+s d n exce$ #ajj1jjj4 ,sec4 #cai4 ,h>d%ip rules = #djc7;b7 plans4 ,sec4 #cbj4 ,,ira pres]vation4 ,sec4 #cba4 ,elim9ation ( additional tax on c]ta9 di/ributions4 ,,title ,,iv--,def9$ b5efit plan re=ms ,sec4 #dja4 ,ca% balance4 ,sec4 #djb4 ,align+ use ( lookback mon?s to det]m9e int]e/ rates4 ,sec4 #djc4 ,corrections ( mortality tables4 ,sec4 #djd4 ,cease d\ble-index+ ! v>iable rate premium4 ,,title ,v--,re=m+ plan rules to h>monize ) ,,ira rules ,sec4 #eja4 ,ro? plan di/ribution rules4 ,sec4 #ejb4 ,di/ributions = *>itable purposes4 ,sec4 #ejc4 ,surviv+ sp\se election to be treat$ z employee4 ,sec4 #ejd4 ,rollov]s f ,ro? ,i,r,as to plans4 ,,title ,,vi--,adm9i/rative provisions ,sec4 #fja4 ,provisions relat+ to plan am5dm5ts4 ,i ,exp&+ cov]age & increas+ retirem5t sav+s #aja4 ,secure def]ral arrangem5ts 7a7 ,9 g5]al ,subsection 7k7 ( section #dja1 z am5d$ by ,public ,law #aae-abc1 is fur!r am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ae7 ,alt]native me?od = secure def]ral arrangem5ts to meet nondiscrim9ation requirem5ts 7,a7 ,9 g5]al ,a secure def]ral arrangem5t %all be treat$ z meet+ ! requirem5ts ( p>agraph 7#c77;,a77ii74 7,b7 ,secure def]ral arrangem5t ,= purposes ( ?is p>agraph1 ! t]m secure def]ral arrangem5t means any ca% or def]r$ arrangem5t :i* meets ! requirem5ts ( subp>agraphs 7,c71 7,d71 & 7,e7 ( p>agraph 7#ac71 except z modifi$ by ?is p>agraph4 7,c7 ,qualifi$ p]c5tage ,= purposes ( ?is p>agraph1 ) respect to any employee1 ! t]m qualifi$ p]c5tage means1 9 lieu ( ! mean+ giv5 su* t]m 9 p>agraph 7#ac77;,c77iii71 any p]c5tage det]m9$ "u ! arrangem5t if su* p]c5tage is appli$ uni=mly & is-- 7i7 at lea/ #f p]c5t1 b n great] ?an #aj p]c5t1 dur+ ! p]iod end+ on ! la/ day ( ! fir/ plan ye> :i* beg9s aft] ! date on :i* ! fir/ elective contribution describ$ 9 p>agraph 7#ac77;,c77i7 is made ) respect to su* employee1 7ii7 at lea/ #g p]c5t dur+ ! fir/ plan ye> foll[+ ! plan ye> describ$ 9 clause 7i71 7iii7 at lea/ #h p]c5t dur+ ! second plan ye> foll[+ ! plan ye> describ$ 9 clause 7i71 7iv7 at lea/ #i p]c5t dur+ ! ?ird plan ye> foll[+ ! plan ye> describ$ 9 clause 7i71 & 7v7 at lea/ #aj p]c5t dur+ any subsequ5t plan ye>4 7,d7 ,mat*+ contributions 7i7 ,9 g5]al ,= purposes ( ?is p>agraph1 an arrangem5t %all be treat$ z hav+ met ! requirem5ts ( p>agraph 7#ac77;,d77i7 if & only if ! employ] makes mat*+ contributions on behalf ( ea* employee :o is n a highly comp5sat$ employee 9 an am\nt equal to ! sum (-- 7,i7 #ajj p]c5t ( ! elective contributions ( ! employee to ! ext5t su* contributions d n exce$ #b p]c5t ( comp5sation1 7,,ii7 #ej p]c5t ( s mu* ( su* contributions z exce$ #b p]c5t b d n exce$ #f p]c5t ( comp5sation1 plus 7,,iii7 #bj p]c5t ( s mu* ( su* contributions z exce$ #f p]c5t b d n exce$ #aj p]c5t ( comp5sation4 7ii7 ,application ( rules = mat*+ contributions ,! rules ( clause 7ii7 ( p>agraph 7#ab77;,b7 & clauses 7iii7 & 7iv7 ( p>agraph 7#ac77;,d7 %all apply = purposes ( clause 7i71 b ! rule ( clause 7iii7 ( p>agraph 7#ab77;,b7 %all n apply = su* purposes4 ,! rate ( mat*+ contribution = ea* increm5tal def]ral mu/ be at lea/ z high z ! rate specifi$ 9 clause 7i71 & may be high]1 s long z su* rate does n increase z an employee's rate ( elective contributions increases4 4 7b7 ,mat*+ contributions & employee contributions ,subsection 7m7 ( section #dja is am5d$ by r$esignat+ p>agraph 7#ac7 z p>agraph 7#ad7 & by ins]t+ aft] p>agraph 7#ab7 ! foll[+ new p>agraph3 7#ac7 ,alt]native me?od = secure def]ral arrangem5ts ,a def9$ contribution plan %all be treat$ z meet+ ! requirem5ts ( p>agraph 7#b7 ) respect to mat*+ contributions & employee contributions if ! plan-- 7,a7 is a secure def]ral arrangem5t 7z def9$ 9 subsection 7k77#ae771 7,b7 meets ! requirem5ts ( clauses 7ii7 & 7iii7 ( p>agraph 7#aa77;,b71 & 7,c7 provides t mat*+ contributions on behalf ( any employee may n be made ) respect to an employee's contributions or elective def]rals 9 excess ( #aj p]c5t ( ! employee's comp5sation4 4 7c7 ,con=m+ am5dm5ts ,subp>agraph 7,h7 ( section #daf7;g77#d7 is am5d$-- 7#a7 9 clause 7i71 by /rik+ section #dja7k77#ab7 or #dja7k77#ac7 & ins]t+ p>agraph 7#ab71 7#ac71 or 7#ae7 ( section #dja7k71 & 7#b7 9 clause 7ii71 by /rik+ section #dja7m77#aa7 or #dja7m77#ab7 & ins]t+ p>agraph 7#aa71 7#ab71 or 7#ac7 ( section #dja7m74 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 #ajb4 ,facilitat+ automatic enrollm5t ,! ,secret>y ( ! ,treasury %all promulgate regulations or o!r guidance :i*-- 7#a7 simplifies & cl>ifies ! rules reg>d+ ! tim+ ( p>ticipant notices requir$ "u ! ,int]nal ,rev5ue ,code ( #aihf ) respect to an eligible automatic enrollm5t contribution arrangem5t 7)9 ! mean+ ( section #dad7w77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 or requir$ "u section #ccf7;c77#c7 ( ! ,consolidat$ ,appropriations ,act1 #bjaf ) respect to an automatic contribution arrangem5t 7)9 ! mean+ ( section #ccf7;c77#b7 ( su* ,act71 ) specific application to-- 7,a7 plans :i* all[ employees to be eligible = p>ticipation imm$iately ^u beg9n+ employm5t2 & 7,b7 employ]s ) multiple payroll & adm9i/rative sy/ems2 & 7#b7 simplifies & cl>ifies ! application ( automatic escalation features "u arrangem5ts describ$ 9 p>agraph 7#a7 9 ! context ( employ]s ) multiple payroll & adm9i/rative sy/ems4 ,su* regulations or guidance %all address ! p>ticul> case ( employees )9 ! same plan :o are subject to diff]5t notice tim+ & diff]5t p]c5tage requirem5ts1 & provide assi/ance = plan sponsors 9 manag+ su* cases4 #ajc4 ,cr$it = employ]s ) respect to modifi$ safe h>bor requirem5ts 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by add+ at ! end ! foll[+ new section3 #de,t4 ,cr$it = small employ]s ) respect to modifi$ safe h>bor requirem5ts = automatic contribution arrangem5ts 7a7 ,g5]al rule ,= purposes ( section #ch1 9 ! case ( a small employ]1 ! safe h>bor adoption cr$it det]m9$ "u ?is section = any taxable ye> is ! am\nt equal to ! total ( ! employ]'s mat*+ contributions "u section #dja7k77#ae77;,d7 dur+ ! taxable ye> on behalf ( employees :o are n highly comp5sat$ employees4 7b7 ,limitations 7#a7 ,limitation ) respect to comp5sation ,! cr$it det]m9$ "u subsection 7a7 ) respect to contributions made on behalf ( any employee %all n exce$ #b p]c5t ( ! comp5sation ( su* employee = ! taxable ye>4 7#b7 ,limitation ) respect to ye>s ( p>ticipation ,cr$it %all be det]m9$ "u subsection 7a7 ) respect to contributions made on behalf ( any employee only dur+ ! fir/ #e ye>s su* employee p>ticipates 9 ! qualifi$ automatic contribution arrangem5t4 7c7 ,def9itions 7#a7 ,9 g5]al ,any t]m us$ 9 ?is section :i* is also us$ 9 section #dja7k77#ae7 %all h ! same mean+ z :5 us$ 9 su* section4 7#b7 ,small employ] ,! t]m small employ] means an eligible employ] 7z def9$ 9 section #djh7p77#b77;,c77i774 7d7 ,d5ial ( d\ble b5efit ,no d$uction %all be all[able "u ?is title = any contribution ) respect to :i* a cr$it is all[$ "u ?is section4 4 7b7 ,cr$it ,to be "p ( g5]al bus9ess cr$it ,subsection 7b7 ( section #ch is am5d$ by /rik+ plus at ! end ( p>agraph 7#ca71 by /rik+ ! p]iod at ! end ( p>agraph 7#cb7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#cc7 ! safe h>bor adoption cr$it det]m9$ "u section #de,t4 4 7c7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by add+ aft] ! item relat+ to section #de,s ! foll[+ new item3 ,sec4 #de,t4 ,cr$it = small employ]s ) respect to modifi$ safe h>bor requirem5ts = automatic contribution arrangem5ts4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s :i* include any portion ( a plan ye> beg9n+ aft] ,decemb] #ca1 #bjah4 #ajd4 ,expansion ( sav]'s cr$it 7a7 ,expansion ,p>agraph 7#a7 ( section #be;,b7b7 is am5d$ by /rik+ #cb1ejj bo? places x appe>s 9 subp>agraphs 7,b7 & 7,c7 ( p>agraph 7#a7 & ins]t+ #dj1jjj4 7b7 ,te/+ p]iod ,subp>agraph 7,b7 ( section #be;,b7d77#b7 is am5d$ to read z foll[s3 7,b7 ,te/+ p]iod ,= purposes ( subp>agraph 7,a71 ! te/+ p]iod1 ) respect to a taxable ye>1 is ! p]iod :i* includes-- 7i7 su* taxable ye>1 & 7ii7 ! #c prec$+ taxable ye>s4 4 7c7 ,treatm5t z refundable 7#a7 ,cr$it mov$ to subp>t relat+ to refundable cr$its 7,a7 ,9 g5]al ,! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7i7 by r$esignat+ section #be;,b1 z am5d$ by ?is ,act1 z section #cf;,c2 & 7ii7 by mov+ su* section1 z s r$esignat$1 f subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a to ! location imm$iately be=e section #cg 9 subp>t ,c ( "p ,,iv ( sub*apt] ,a ( *apt] #a4 7,b7 ,te*nical am5dm5ts 7i7 ,! table ( sections = subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by /rik+ ! item relat+ to section #be;,b4 7ii7 ,! table ( sections = subp>t ,c ( "p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by ins]t+ aft] ! item relat+ to section #cf;,b ! foll[+ new item3 ,sec4 #cf;,c4 ,elective def]rals & ,,ira contributions by c]ta9 individuals4 4 7#b7 ,m&atory deposit into qualifi$ acc\nt 7,a7 ,no r$uction ( tax ,subsection 7a7 ( section #cf;,c1 z mov$ & r$esignat$ by p>agraph 7#a71 is am5d$ by /rik+ aga9/ ! tax impos$ by ?is subtitle4 7,b7 ,deposit into qualifi$ acc\nt ,section #cf;,c1 z s mov$ & r$esignat$1 is am5d$ by add+ at ! end ! foll[+ new subsection3 7g7 ,deposit into qualifi$ acc\nt 7#a7 ,9 g5]al ,any am\nt all[$ z a cr$it "u subsection 7a7 %all n be all[$ z a cr$it aga9/ any tax impos$ by ?is subtitle b in/ead %all be treat$ z an ov]paym5t "u section #fdja7;b7 &-- 7,a7 %all be paid on behalf ( ! individual taxpay] to a ,ro? ,,ira or a designat$ ,ro? acc\nt 7)9 ! mean+ ( section #djb;,a7 "u an applicable retirem5t plan designat$ by ! individual to be inve/$ 9 a mann] designat$ by ! individual1 except t 9 ! case ( a jo9t return ea* sp\se %all be entitl$ to designate an applicable retirem5t plan & inve/m5ts ) respect to paym5ts attributable to su* sp\se1 or 7,b7 9 ! case ( a taxpay] :o does n prop]ly designate an applicable retirem5t plan 9 a timely mann] or :o designates an applicable retirem5t plan :i* does n accept su* am\nt 9 a timely mann]1 %all be paid or cr$it$ on behalf ( ! individual taxpay] 9 a mann] det]m9$ "u rules prescrib$ by ! ,secret>y :i* provides treatm5t comp>able to ! treatm5t "u subp>agraph 7,a74 7#b7 ,applicable retirem5t plan ,= purposes ( ?is subsection1 ! t]m applicable retirem5t plan means a plan :i* elects to accept deposits "u ?is subsection & :i* is describ$ 9 clause 7iii71 7iv71 7v71 or 7vi7 ( section #djb7;c77#h77;,b7 or 9 section #djh;,a7b74 7#c7 ,treatm5t ( paym5ts ,9 ! case ( any paym5t "u ?is subsection-- 7,a7 except z o!rwise provid$ 9 ?is section or by ! ,secret>y "u regulations1 su* paym5t %all be treat$ 9 ! same mann] z a paym5t made by ! individual on ^: behalf su* paym5t 0 made1 7,b7 su* paym5t %all n be treat$ z income to ! taxpay]1 & 7,c7 su* paym5t %all n be tak5 into acc\nt ) respect to any applicable limitation "u sections #djb7;g77#a71 #djc7;b71 #djh7;a77#a71 #djh7;b77#b77;,b71 #djh;,a7c77#b71 #dad7v77#b71 #dae7;c71 or #deg7;b77#b74 7#d7 ,treatm5t ( qualifi$ plans1 etc ,a plan or arrangem5t to :i* a paym5t is made "u ?is subsection %all n be treat$ z violat+ any requirem5t "u section #dja1 #djc1 #djh1 or #deg solely by reason ( accept+ su* paym5t4 7#e7 ,errone\s cr$its ,if any paym5t is errone\sly paid "u ?is subsection1 ! am\nt ( su* errone\s paym5t %all be treat$ z an und]paym5t ( tax4 4 7d7 ,regulation & promotion ,! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate7 %all take su* /eps z ! ,secret>y 7or delegate7 det]m9es are necess>y & appropriate to increase public aw>5ess ( ! cr$it provid$ "u section #cf;,c ( ! ,int]nal ,rev5ue ,code ( #aihf 7z am5d$ & r$esignat$ by ?is section74 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 #aje4 ,qualifi$ ca% or def]r$ arrangem5ts mu/ all[ long-t]m employees work+ m ?an #ejj b less ?an #a1jjj h\rs p] ye> to p>ticipate 7a7 ,p>ticipation requirem5t 7#a7 ,9 g5]al ,subp>agraph 7,d7 ( section #dja7k77#b7 is am5d$ to read z foll[s3 7,d7 :i* does n require1 z a condition ( p>ticipation 9 ! arrangem5t1 t an employee complete a p]iod ( s]vice ) ! employ] 7or employ]s7 ma9ta9+ ! plan ext5d+ beyond ! close ( ! e>li] (-- 7i7 ! p]iod p]mitt$ "u section #daj7;a77#a7 7det]m9$ )\t reg>d to subp>agraph 7,b77i7 !re(71 or 7ii7 subject to ! provisions ( p>agraph 7#af71 ! fir/ p]iod ( #b consecutive #ab-mon? p]iods dur+ ea* ( :i* ! employee has at lea/ #ejj h\rs ( s]vice4 4 7#b7 ,special rules ,section #dja7k71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#af7 ,special rules = p>ticipation requirem5t = long-t]m1 "p-"t work]s ,= purposes ( p>agraph 7#b77;,d77ii7-- 7,a7 ,age requirem5t mu/ be met ,p>agraph 7#b77;,d77ii7 %all n apply to an employee unless ! employee has met ! requirem5t ( section #daj7;a77#a77;,a77i7 by ! close ( ! la/ ( ! #ab-mon? p]iods describ$ 9 su* p>agraph4 7,b7 ,nondiscrim9ation & top-heavy rules n to apply 7i7 ,nondiscrim9ation rules ,9 ! case ( employees :o are eligible to p>ticipate 9 ! arrangem5t solely by reason ( p>agraph 7#b77;,d77ii7-- 7,i7 not)/&+ subsection 7a77#d71 an employ] %all n be requir$ to make nonelective or mat*+ contributions on behalf ( su* employees ev5 if su* contributions are made on behalf ( o!r employees eligible to p>ticipate 9 ! arrangem5t1 & 7,,ii7 an employ] may elect to exclude su* employees f ! application ( subsection 7a77#d71 p>agraph 7#c71 subsection 7m77#b71 & section #daj7;b74 7ii7 ,top-heavy rules ,an employ] may elect to exclude all employees :o are eligible to p>ticipate 9 a plan ma9ta9$ by ! employ] solely by reason ( p>agraph 7#b77;,d77ii7 f ! application ( ! ve/+ & b5efit requirem5ts "u subsections 7b7 & 7c7 ( section #daf4 7iii7 ,ve/+ ,= purposes ( det]m9+ :e!r an employee describ$ 9 clause 7i7 has a non=feitable "r to employ] contributions 7o!r ?an contributions describ$ 9 p>agraph 7#c77;,d77i77 "u ! arrangem5t1 ea* #ab-mon? p]iod = :i* ! employee has at lea/ #ejj h\rs ( s]vice %all be treat$ z a ye> ( s]vice4 7iv7 ,employees :o become full-"t employees ,?is subp>agraph %all cease to apply to any employee z ( ! fir/ plan ye> beg9n+ aft] ! plan ye> 9 :i* ! employee meets ! requirem5ts ( section #daj7;a77#a77;,a77ii7 )\t reg>d to p>agraph 7#b77;,d77ii7 ( ?is subsection4 7,c7 ,exception = employees "u collectively b>ga9$ plans1 etc ,p>agraph 7#b77;,d77ii7 %all n apply to employees describ$ 9 section #daj7;b77#c74 7,d7 ,special rules 7i7 ,"t ( p>ticipation ,! rules ( section #daj7;a77#d7 %all apply to an employee eligible to p>ticipate 9 an arrangem5t solely by reason ( p>agraph 7#b77;,d77ii74 7ii7 #ab-mon? p]iods #ab-mon? p]iods %all be det]m9$ 9 ! same mann] z "u ! la/ s5t5ce ( section #daj7;a77#c77;,a74 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjah1 except t1 = purposes ( section #dja7k77#b77;,d77ii7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by su* am5dm5ts71 #ab-mon? p]iods beg9n+ be=e ,janu>y #a1 #bjai1 %all n be tak5 into acc\nt4 #ajf4 ,sep>ate application ( top heavy rules to def9$ contribution plans cov]+ "p-"t employees 7a7 ,9 g5]al ,p>agraph 7#b7 ( section #daf7;c7 is am5d$ by add+ at ! end ! foll[+3 7,c7 ,sep>ate application to employees n meet+ age & s]vice requirem5ts ,if employees n meet+ ! age or s]vice requirem5ts ( section #daj7;a77#a7 7)\t reg>d to subp>agraph 7,b7 !re(7 are cov]$ "u a plan ( ! employ] :i* meets ! requirem5ts ( p>agraphs 7,a7 & 7,b7 sep>ately ) respect to su* employees1 su* employees may be exclud$ f consid]ation 9 det]m9+ :e!r any plan ( ! employ] meets ! requirem5ts ( subp>agraphs 7,a7 & 7,b74 4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #ajg4 ,opportunity to claim ! sav]'s cr$it on =m #ajdj;,,ez ,! ,secret>y ( ! ,treasury %all modify ! =ms = ! return ( tax ( individuals 9 ord] to all[ individuals claim+ ! cr$it "u section #cf;,c ( ! ,int]nal ,rev5ue ,code ( #aihf 7z mov$ & r$esignat$ by ?is ,act7 to file 7& claim su* cr$it on7 ,=m #ajdj;,,ez4 #ajh4 #fj-;day rollov] to inh]it$ individual retirem5t plan ( nonsp\se b5efici>y 7a7 ,9 g5]al ,section #djb7;c77#aa7 is am5d$ by r$esignat+ subp>agraph 7,b7 z subp>agraph 7,c7 & by /rik+ subp>agraph 7,a7 & ins]t+ ! foll[+3 7,a7 ,9 g5]al ,if-- 7i7 any portion ( a di/ribution attributable to an employee is paid aft] ! dea? ( ! employee to an individual :o is a designat$ b5efici>y 7z def9$ by section #dja7;a77#i77;,e77 ( ! employee & :o is n ! surviv+ sp\se ( ! employee1 & 7ii7 su* portion is transf]r$ or paid to an individual retirem5t plan 9 a transf] or paym5t meet+ ! requirem5ts ( subp>agraph 7,b71 ! prec$+ provisions ( ?is subsection %all apply to su* di/ribution 9 ! same mann] z if ! designat$ b5efici>y 7 ! employee4 7,b7 ,requirem5ts = transf] ( di/ribution ,! requirem5ts ( ?is subp>agraph are met ) respect to ! portion ( any di/ribution if-- 7i7 su* portion is transf]r$ or paid to an individual retirem5t plan describ$ 9 clause 7i7 or 7ii7 ( p>agraph 7#h77;,b7 e/abli%$ = ! purposes ( receiv+ ! di/ribution on behalf ( ! designat$ b5efici>y1 7ii7 su* individual retirem5t plan is e/abli%$ z an inh]it$ individual retirem5t acc\nt or individual retirem5t annuity 7)9 ! mean+ ( section #djh7;d77#c77;,c771 :i*ev] is applicable1 & 7iii7 notice is provid$ to ! tru/ee1 insurance company1 or o!r provid] ( ! individual retirem5t plan t su* individual retirem5t plan is be+ e/abli%$ z an inh]it$ individual retirem5t acc\nt or individual retirem5t annuity4 ,section #dja7;a77#i77;,b7 7o!r ?an clause 7iv7 !re(7 %all apply to su* individual retirem5t plan4 4 7b7 ,rollov] treatm5t = inh]it$ acc\nts ,section #djh7;d77#c77;,c7 is am5d$ by add+ at ! end ! foll[+3 7iii7 ,exception = qualifi$ transf]s to ano!r inh]it$ acc\nt ,clause 7i7 %all n apply to any portion ( a di/ribution f an inh]it$ individual retirem5t acc\nt or inh]it$ individual retirem5t annuity if su* portion is paid to ano!r su* individual retirem5t plan or annuity1 b only if ! requirem5ts ( subp>agraphs 7,a71 7,b71 & 7,e7 ( ?is p>agraph & ! requirem5ts ( section #djb7;c77#aa77;,b7 are met ) respect to su* transf] or paym5t4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions made aft] ,decemb] #ca1 #bjah4 #aji4 ,increase 9 age = requir$ beg9n+ date = m&atory di/ributions 7a7 ,increase 9 age = requir$ beg9n+ date 7#a7 ,9 g5]al ,subclause 7,i7 ( section #dja7;a77#i77;,c77i7 is am5d$ to read z foll[s3 7,i7 ! fir/ cal5d> ye> 9 :i* ! employee atta9s ! applicable age = su* cal5d> ye>1 or 4 7#b7 ,special rule = own]s ,subclause 7,i7 ( section #dja7;a77#i77;,c77ii7 is am5d$ by /rik+ 9 :i* ! employee atta9s age #gja_/b & ins]t+ describ$ 9 clause 7i77,i7 ) respect to ! employee4 7b7 ,m&atory di/ribution age ,p>agraph 7#i7 ( section #dja7;a7 is am5d$ by ins]t+ at ! end ! foll[+ new subp>agraph3 7,h7 ,applicable age ,= purposes ( ?is p>agraph-- 7i7 ,9 g5]al ,! applicable age is-- 7,i7 = cal5d> ye>s be=e #bjbc1 age #gja_/b1 7,,ii7 = cal5d> ye>s #bjbc1 #bjbd1 #bjbe1 #bjbf1 #bjbg1 #bjbh1 & #bjbi1 age #gb1 & 7,,iii7 = cal5d> ye>s aft] #bjbi1 age #ge4 7ii7 ,transition rule ,if1 z ( a cal5d> ye>1 an employee has n atta9$ ! applicable age ) respect to su* ye>1 su* employee %all be treat$ z n hav+ atta9$ ! applicable age "u ?is p>agraph = su* ye> )\t reg>d to :e!r1 9 a previ\s cal5d> ye>1 ! employee _h atta9$ ! applicable age ) respect to su* previ\s cal5d> ye>4 4 7c7 ,sp\se b5efici>ies ,subclause 7,i7 ( section #dja7;a77#i77;,b77iv7 is am5d$ by /rik+ age #gja_/b & ins]t+ ! applicable age4 7d7 ,con=m+ am5dm5t ,subsection 7b7 ( section #djh is am5d$ by /rik+ age #gja_/b & ins]t+ ! applicable age det]m9$ "u section #dja7;a77#i77;,h7 ) respect to su* individual4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to cal5d> ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 #aaj4 ,updat+ ( mortality tables = m9imum requir$ di/ributions ,section #dja7;a77#i71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,i7 ,mortality tables 7i7 ,initial update ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is subp>agraph1 ! ,secret>y %all ei!r update1 or provide new tables to replace1 ! mortality tables us$ z ( su* date = purposes ( ?is p>agraph4 7ii7 ,p]iodic revision ,! ,secret>y %all 7at lea/ e #aj ye>s7 make revisions 91 or provide new tables to replace1 any table 9 effect "u ?is subp>agraph to reflect ! actual exp]i5ce ( p5sion plans & project$ tr5ds 9 su* exp]i5ce4 7iii7 ,effective date ,any table prescrib$ "u ?is subp>agraph %all apply to plan ye>s beg9n+ aft] ! date :i* is #a ye> aft] publication ( ! f9al table4 4 #aaa4 ,increase 9 cr$it limitation = small employ] p5sion plan />tup co/s ( c]ta9 employ]s 7a7 ,9 g5]al ,subsection 7a7 ( section #de;,e is am5d$ by ins]t+ be=e ! p]iod at ! end ! foll[+3 7#ge p]c5t ( su* co/s 9 ! case ( an eligible employ]1 z det]m9$ by sub/itut+ #be = #ajj 9 section #djh7p77#b77;,c77i774 7b7 ,increase ,p>agraph 7#a7 ( section #de;,e7b7 is am5d$ to read z foll[s3 7#a7 = ! fir/ cr$it ye> & ea* ( ! #b taxable ye>s imm$iately foll[+ ! fir/ cr$it ye>1 ! great] (-- 7,a7 #ejj1 or 7,b7 ! less] (-- 7i7 #bej = ea* employee ( ! eligible employ] :o is n a highly comp5sat$ employee 7z def9$ 9 section #dae7q77 & :o is eligible to p>ticipate 9 ! eligible employ] plan ma9ta9$ by ! eligible employ]1 or 7ii7 #e1jjj1 & 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 #aab4 ,cr$it = re-enrollm5t 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a1 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new section3 #de,u4 ,cr$it = re-enrollm5t provisions 9 plans provid$ by small employ]s 7a7 ,9 g5]al ,= purposes ( section #ch1 9 ! case ( an eligible employ]1 ! retirem5t re-enrollm5t cr$it det]m9$ "u ?is section = any taxable ye> is an am\nt equal to-- 7#a7 #ejj = any taxable ye> occurr+ dur+ ! cr$it p]iod1 & 7#b7 z]o = any o!r taxable ye>4 7b7 ,cr$it p]iod ,= purposes ( subsection 7a7-- 7#a7 ,9 g5]al ,! cr$it p]iod ) respect to any eligible employ] is ! #c-taxable-ye> p]iod beg9n+ ) ! fir/ taxable ye> = :i* ! employ] includes a re-enrollm5t provision 9 an eligible automatic contribution arrangem5t 7z def9$ 9 section #dad7w77#c77 9 a qualifi$ employ] plan 7z def9$ 9 section #digb7;d77 sponsor$ by ! employ]4 7#b7 ,ma9t5ance ( arrangem5t ,no taxable ye> ) respect to an employ] %all be treat$ z occurr+ )9 ! cr$it p]iod unless ! provision describ$ 9 p>agraph 7#a7 is includ$ 9 ! plan = su* ye>4 7c7 ,eligible employ] ,= purposes ( ?is section1 ! t]m eligible employ] has ! mean+ giv5 su* t]m 9 section #djh7p77#b77;,c77i74 7d7 ,re-,enrollm5t provision ,= purposes ( ?is section1 ! t]m re-enrollm5t provision means a provision ( an eligible automatic contribution arrangem5t "u :i*-- 7#a7 ,9 g5]al ,ea* employee eligible to p>ticipate 9 ! arrangem5t :o is n contribut+ or is contribut+ less ?an ! p]c5tage applicable to an eligible employee 9 ! fir/ ye> ( eligibility is treat$ z be+ 9 su* fir/ ye> ( eligibility 9 ea* applicable ye> ) respect to ! employee4 7#b7 ,election out ,! election treat$ z hav+ be5 made "u p>agraph 7#a7 %all cease to apply ) respect to any employee if su* employee makes an affirmative election-- 7,a7 to n h su* contributions made1 or 7,b7 to make elective contributions at a level specifi$ 9 su* affirmative election4 7#c7 ,applicable ye> e ?ird ye> 7,a7 ,9 g5]al ,= purposes ( ?is section1 ! t]m applicable ye> means1 ) respect to an employee1 su* employee's fir/ plan ye> ( eligibility "u ! arrangem5t1 & all subsequ5t plan ye>s ( eligibility4 7,b7 ,exception ,foll[+ any applicable ye> ( an employee 7det]m9$ aft] ! application ( ?is subp>agraph71 ! plan may elect to treat ! next #a or #b plan ye>s z n be+ applicable ye>s ) respect to su* employee4 4 7b7 ,cr$it ,to be "p ( g5]al bus9ess cr$it ,subsection 7b7 ( section #ch1 z am5d$ by ?is ,act1 is fur!r am5d$ by /rik+ plus at ! end ( p>agraph 7#cb71 by /rik+ ! p]iod at ! end ( p>agraph 7#cc7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#cd7 9 ! case ( an eligible employ] 7z def9$ 9 section #de,u7c771 ! retirem5t re-enrollm5t cr$it det]m9$ "u section #de,u7a74 4 7c7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by ins]t+ aft] ! item relat+ to section #de,t ! foll[+ new item3 ,sec4 #de,u4 ,cr$it = re-enrollm5t provisions 9 plans provid$ by small employ]s4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 #aac4 ,treatm5t ( /ud5t loan paym5ts z elective def]rals = purposes ( mat*+ contributions 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #dja7m77#d7 is am5d$ by /rik+ & at ! end ( clause 7i71 by /rik+ ! p]iod at ! end ( clause 7ii7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new clause3 7iii7 subject to ! requirem5ts ( p>agraph 7#ad71 any employ] contribution made to a def9$ contribution plan on behalf ( an employee on acc\nt ( a qualifi$ /ud5t loan paym5t4 4 7b7 ,qualifi$ /ud5t loan paym5t ,p>agraph 7#d7 ( section #dja7m7 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,d7 ,qualifi$ /ud5t loan paym5t ,! t]m qualifi$ /ud5t loan paym5t means a paym5t made by an employee 9 repaym5t ( a qualifi$ education loan 7z def9$ 9 section #bba7;d77#a77 incurr$ to pay qualifi$ high] education exp5ses ( ! employee1 b only-- 7i7 to ! ext5t su* paym5ts 9 ! aggregate = ! ye> d n exce$ an am\nt equal to-- 7,i7 ! limitation applicable "u section #djb7;g7 = ! ye> 7or1 if less]1 ! employee's comp5sation 7z def9$ 9 section #dae7;c77#c77 = ! ye>71 r$uc$ by 7,,ii7 ! elective def]rals made by ! employee = su* ye>1 & 7ii7 if ! employee provides evid5ce ( su* loan & su* paym5ts to ! employ] mak+ ! mat*+ contribution "u ?is p>agraph4 ,= purposes ( ?is subp>agraph1 ! t]m qualifi$ high] education exp5ses means ! co/ ( att5dance 7z def9$ 9 section #dgb ( ! ,high] ,education ,act ( #aife1 z 9 effect on ! day be=e ! date ( ! enactm5t ( ! ,taxpay] ,relief ,act ( #aiig7 at an eligible educational in/itution 7z def9$ 9 section #bba7;d77#b774 4 7c7 ,mat*+ contributions = qualifi$ /ud5t loan paym5ts ,subsection 7m7 ( section #dja1 z am5d$ by ?is ,act1 is fur!r am5d$ by r$esignat+ p>agraph 7#ad7 z p>agraph 7#ae71 & by ins]t+ aft] p>agraph 7#ac7 ! foll[+ new p>agraph3 7#ad7 ,mat*+ contributions = qualifi$ /ud5t loan paym5ts 7,a7 ,9 g5]al ,= purposes ( p>agraph 7#d77;,a77iii71 an employ] contribution made to a def9$ contribution plan on acc\nt ( a qualifi$ /ud5t loan paym5t %all be treat$ z a mat*+ contribution = purposes ( ?is title if-- 7i7 ! plan provides mat*+ contributions on acc\nt ( elective def]rals at ! same rate z contributions on acc\nt ( qualifi$ /ud5t loan paym5ts1 7ii7 ! plan provides mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts only on behalf ( employees o!rwise eligible to make elective def]rals1 & 7iii7 "u ! plan1 all employees eligible to receive mat*+ contributions on acc\nt ( elective def]rals are eligible to receive mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts4 7,b7 ,treatm5t = purposes ( nondiscrim9ation rules1 etc 7i7 ,nondiscrim9ation rules ,= purposes ( subp>agraph 7,a77iii71 subsection 7a77#d71 & section #daj7;b71 mat*+ contributions describ$ 9 p>agraph 7#d77;,a77iii7 %all n fail to be treat$ z available to an employee solely because su* employee does n h debt incurr$ "u a qualifi$ education loan 7z def9$ 9 section #bba7;d77#a774 7ii7 ,/ud5t loan paym5ts n treat$ z plan contribution ,except z provid$ 9 clause 7iii71 a qualifi$ /ud5t loan paym5t %all n be treat$ z a contribution to a plan "u ?is title4 7iii7 ,mat*+ contribution rules ,solely = purposes ( meet+ ! requirem5ts ( p>agraph 7#aa77;,b71 7#ab71 or 7#ac7 ( ?is subsection1 or p>agraph 7#aa77;,b77i77,,ii71 7#ab77;,b71 7#ac77;,d71 or 7#ae77;,d7 ( subsection 7k71 a plan may treat a qualifi$ /ud5t loan paym5t z an elective def]ral or an elective contribution1 :i*ev] is applicable4 7,c7 ,regulatory au?ority ,! ,secret>y %all prescribe regulations-- 7i7 sett+ =? ! conditions "u :i* a plan adm9i/rator may rely ^u evid5ce submitt$ by an employee ( qualifi$ /ud5t loan paym5ts1 & 7ii7 p]mitt+ a plan to make mat*+ contributions = qualifi$ /ud5t loan repaym5ts at a diff]5t frequ5cy ?an mat*+ contributions are o!rwise made "u ! plan1 provid$ t ! frequ5cy is n less ?an annually4 4 7d7 ,simple retirem5t acc\nts ,p>agraph 7#b7 ( section #djh7p7 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,f7 ,mat*+ contributions = qualifi$ /ud5t loan paym5ts 7i7 ,9 g5]al ,subject to ! rules ( clause 7iii71 an arrangem5t %all n fail to be treat$ z meet+ ! requirem5ts ( subp>agraph 7,a77iii7 solely because "u ! arrangem5t1 solely = purposes ( su* subp>agraph1 qualifi$ /ud5t loan paym5ts are treat$ z am\nts elect$ by ! employee "u subp>agraph 7,a77i77,i7 to ! ext5t su* paym5ts d n exce$-- 7,i7 ! applicable doll> am\nt "u subp>agraph 7,e7 7aft] application ( section #dad7v77 = ! ye> 7or1 if less]1 ! employee's comp5sation 7z def9$ 9 section #dae7;c77#c77 = ! ye>71 r$uc$ by 7,,ii7 any o!r am\nts elect$ by ! employee "u subp>agraph 7,a77i77,i7 = ! ye>4 7ii7 ,qualifi$ /ud5t loan paym5t ,= purposes ( ?is subp>agraph-- 7,i7 ,9 g5]al ,! t]m qualifi$ /ud5t loan paym5t means a paym5t made by an employee 9 repaym5t ( a qualifi$ education loan 7z def9$ 9 section #bba7;d77#a77 incurr$ to pay qualifi$ high] education exp5ses ( ! employee1 b only if ! employee provides evid5ce ( su* loan & su* paym5ts to ! employ] mak+ ! mat*+ contribution4 7,,ii7 ,qualifi$ high] education exp5ses ,! t]m qualifi$ high] education exp5ses has ! same mean+ z :5 us$ 9 section #dja7m77#d77;,d74 7iii7 ,applicable rules ,clause 7i7 %all apply to an arrangem5t only if1 "u ! arrangem5t-- 7,i7 mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts are provid$ only on behalf ( employees o!rwise eligible to elect contributions "u subp>agraph 7,a77i77,i71 & 7,,ii7 all employees o!rwise eligible to p>ticipate 9 ! arrangem5t are eligible to receive mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts4 4 7e7 #djc7;b7 plans ,subp>agraph 7,a7 ( section #djc7;b77#ab7 is am5d$ by add+ at ! end ! foll[+3 ,! fact t ! employ] (f]s mat*+ contributions on acc\nt ( qualifi$ /ud5t loan paym5ts z describ$ 9 section #dja7m77#ad7 %all n be tak5 into acc\nt 9 det]m9+ :e!r ! arrangem5t satisfies ! requirem5ts ( clause 7ii7 7& any regulation !reund]744 7f7 ,effective date ,! am5dm5ts made by ?is section %all apply to contributions made = ye>s beg9n+ aft] ,decemb] #ca1 #bjai4 #aad4 ,treatm5t ( qualifi$ retirem5t plann+ s]vices 7a7 ,9 g5]al ,subsection 7m7 ( section #acb is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#d7 ,no con/ructive receipt ,no am\nt %all be includ$ 9 ! gross income ( any employee solely because ! employee may *oose betwe5 any qualifi$ retirem5t plann+ s]vices & comp5sation :i* w\ld o!rwise be includible 9 ! gross income ( su* employee4 ,! prec$+ s5t5ce %all apply to highly comp5sat$ employees only if ! *oice describ$ 9 su* s5t5ce is available on sub/antially ! same t]ms to ea* memb] ( ! gr\p ( employees normally provid$ education & in=mation reg>d+ ! employ]'s qualifi$ employ] plan4 4 7b7 ,def9ition ,p>agraph 7#a7 ( section #acb7m7 is am5d$ by ins]t+ be=e ! p]iod ! foll[+3 81 includ+-- 7,a7 advice reg>d+ inve/m5ts 9 any arrangem5t describ$ 9 section #bai7;g77#e7 7)\t reg>d to ! la/ s5t5ce !re(71 & 7,b7 retirem5t advice reg>d+ inve/m5ts held outside su* an arrangem5t4 4 7c7 ,con=m+ am5dm5ts 7#a7 ,section #djc7;b77#c77;,b7 is am5d$ by ins]t+ #acb7m77#d71 aft] #acb7;f77#d714 7#b7 ,section #dad7s77#b7 is am5d$ by ins]t+ #acb7m77#d71 aft] #acb7;f77#d714 7#c7 ,section #dae7;c77#c77;,d77ii7 is am5d$ by ins]t+ #acb7m77#d71 aft] #acb7;f77#d714 7d7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 #aae4 ,all[ additional nonelective contributions to simple plans 7a7 ,9 g5]al 7#a7 ,modification to def9ition ,subp>agraph 7,a7 ( section #djh7p77#b7 is am5d$ by /rik+ & at ! end ( clause 7iii71 by r$esignat+ clause 7iv7 z clause 7v71 & by ins]t+ aft] clause 7iii7 ! foll[+ new clause3 7iv7 ! employ] may make nonelective contributions ( a uni=m p]c5tage 7up to #aj p]c5t7 ( comp5sation = ea* employee :o is eligible to p>ticipate 9 ! arrangem5t & :o has at lea/ #e1jjj ( comp5sation f ! employ] = ! ye>1 & 4 7#b7 ,limitation ,subp>agraph 7,a7 ( section #djh7p77#b7 is am5d$ by add+ at ! end ! foll[+3 ,! comp5sation tak5 into acc\nt "u clause 7iv7 = any ye> %all n exce$ ! limitation 9 effect = su* ye> "u section #dja7;a77#ag744 7#c7 ,ov]all doll> limit on contributions ,p>agraph 7#h7 ( section #djh7p7 is am5d$ to read z foll[s3 7#h7 ,coord9ation ) maximum limitation "u subsection 7a7 ,9 ! case ( any simple retirem5t acc\nt1 subsections 7a77#a7 & 7b77#b7 %all be appli$ by sub/itut+ = ! doll> am\nt 9 effect "u section #bai7;b77#a77;,a7 ! foll[+3 ! sum 7b n to exce$ #ej p]c5t ( ! am\nt 9 effect "u section #dae7;c77#a77;,a7 7except z provid$ 9 section #dad7v777 ( ! doll> am\nt 9 effect "u p>agraph 7#b77;,a77ii7 ( ?is subsection2 ! employ] contribution requir$ "u p>agraph 7#b77;,a77iii7 or 7#b77;,b77i7 ( ?is subsection1 :i*ev] is applicable2 & ! employ] contribution made on behalf ( ! employee "u p>agraph 7#b77;,a77iv7 ( ?is subsection4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #djh7p77#b77;,a77v71 z r$esignat$ by subsection 7a71 is am5d$ by /rik+ or 7iii7 & ins]t+ 1 7iii71 or 7iv74 7#b7 ,p>agraph 7#h7 ( section #djh7p7 is am5d$ by ins]t+ 1 ! employ] contribution actually made "u p>agraph 7#b77;,a77iv7 ( ?is subsection1 aft] p>agraph 7#b77;,a77ii7 ( ?is subsection4 7#c7 ,section #dja7k77#aa77;,b77i7 is am5d$ by /rik+ & at ! end ( subclause 7,,ii71 by r$esignat+ subclause 7,,iii7 z subclause 7,v71 & by ins]t+ aft] subclause 7,,ii7 ! foll[+ new subclauses3 7,,iii7 ! employ] may make nonelective contributions ( a uni=m p]c5tage 7up to #aj p]c5t7 ( comp5sation = ea* employee :o is eligible to p>ticipate 9 ! arrangem5t & :o has at lea/ #e1jjj ( comp5sation f ! employ] = ! ye>1 7,,iv7 contributions on behalf ( any employee = any ye> may n exce$ #ej p]c5t ( ! am\nt 9 effect "u section #dae7;c77#a77;,a7 7except z provid$ 9 section #dad7v771 & 4 7#d7 ,section #dja7k77#aa77;,b77i77,v71 z r$esignat$ by p>agraph 7#c71 is am5d$ by /rik+ or 7,,ii7 & ins]t+ 1 7,,ii71 or 7,,iii74 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 #aaf4 ,re=m ( ! m9imum p>ticipation rule 7a7 ,9 g5]al ,subp>agraph 7,h7 ( section #dja7;a77#bf7 is am5d$ by add+ at ! end ! foll[+3 ,n lat] ?an ,decemb] #ca1 #bjai1 ! ,secret>y %all issue f9al regulations "u :i* ?is p>agraph may be appli$ sep>ately to bona fide sep>ate subsidi>ies or divisions44 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all take effect on ! date ( enactm5t ( ?is ,act4 #aag4 ,expansion ( ,employee ,plans ,compliance ,resolution ,sy/em 7a7 ,9 g5]al ,except z o!rwise provid$ 9 regulations prescrib$ by ! ,secret>y ( ! ,treasury or ! ,secret>y's delegate 7ref]r$ to 9 ?is section z ! ,secret>y71 any inadv]t5t failure to comply ) ! rules applicable "u section #dja7;a71 #djc7;a71 #djc7;b71 #djh7p71 or #djh7k7 ( ! ,int]nal ,rev5ue ,code ( #aihf may be self-correct$ "u ! ,employee ,plans ,compliance ,resolution ,sy/em 7z describ$ 9 ,rev5ue ,proc$ure #bjah-eb or any successor guidance71 except to ! ext5t t su* failure 0 id5tifi$ by ! ,secret>y prior to any actions :i* demon/rate a commitm5t to implem5t a self-correction4 ,rev5ue ,proc$ure #bjah-eb is deem$ am5d$ z ( ! date ( ! enactm5t ( ?is ,act to provide t ! correction p]iod "u section #i4jb ( su* ,rev5ue ,proc$ure 7or any successor provision7 = an inadv]t5t failure is indef9ite & has no la/ day1 o!r ?an ) respect to failures id5tifi$ by ! ,secret>y prior to any self-correction z describ$ 9 ! prec$+ s5t5ce4 7b7 ,loan error ,! ,secret>y ( ,labor %all treat any loan error correct$ pursuant to subsection 7a7 z meet+ ! requirem5ts ( ! ,volunt>y ,fiduci>y ,correction ,program ( ! ,dep>tm5t ( ,labor4 7c7 ,,epcrs = ,i,r,as ,! ,secret>y %all exp& ! ,employee ,plans ,compliance ,resolution ,sy/em to all[ cu/odians ( individual retirem5t plans to address inadv]t5t failures = :i* ! own] ( an individual retirem5t plan 0 n at fault1 includ+ 7b n limit$ to7-- 7#a7 waiv]s ( ! excise tax :i* w\ld o!rwise apply "u section #digd ( ! ,int]nal ,rev5ue ,code ( #aihf2 7#b7 "u ! self-correction compon5t ( ! ,employee ,plans ,compliance ,resolution ,sy/em1 waiv]s ( ! #fj-;day deadl9e = a rollov] :]e ! deadl9e is miss$ = reasons beyond ! reasonable control ( ! acc\nt own]2 & 7#c7 rules p]mitt+ a nonsp\se b5efici>y to return di/ributions to an inh]it$ individual retirem5t plan describ$ 9 section #djh7;d77#c77;,c7 ( ! ,int]nal ,rev5ue ,code ( #aihf 9 a case :]e1 due to an inadv]t5t error by a s]vice provid]1 ! b5efici>y _h reason to believe t ! di/ribution c\ld be roll$ ov] )\t inclusion 9 income ( any "p ( ! di/ribut$ am\nt4 7d7 ,requir$ m9imum di/ribution corrections ,! ,secret>y %all exp& ! ,employee ,plans ,compliance ,resolution ,sy/em to all[ plans to :i* su* sy/em applies & cu/odians & own]s ( individual retirem5t plans to self-correct1 )\t an excise tax1 any inadv]t5t failures pursuant to :i* a di/ribution is made no m ?an #ahj days aft] x 0 requir$ to be made4 7e7 ,additional safe h>bors ,! ,secret>y %all exp& ! ,employee ,plans ,compliance ,resolution ,sy/em 7z describ$ 9 ,rev5ue ,proc$ure #bjah-eb or any successor guidance7 to provide additional safe h>bor means ( correct+ inadv]t5t failures describ$ 9 subsection 7a71 includ+ safe h>bor means ( calculat+ ! e>n+s :i* mu/ be re/or$ to a plan 9 cases :]e plan assets h be5 deplet$ by reason ( an inadv]t5t failure4 7f7 ,def9itions & special rules 7#a7 ,inadv]t5t failure ,= purposes ( ?is section-- 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 ! t]m inadv]t5t failure means a failure t occurs despite ! exi/5ce ( practices & proc$ures :i*-- 7i7 satisfy ! /&>ds set =? 9 section #d4jd ( ,rev5ue ,proc$ure #bjah-eb 7or any successor provision72 or 7ii7 satisfy simil> /&>ds 9 ! case ( an individual retirem5t plan4 7,b7 ,correction by own] ( individual retirem5t plan ,9 ! case ( a correction by an own] ( an individual retirem5t plan "u subsection 7d71 ! t]m inadv]t5t failure means a failure due to reasonable cause4 7#b7 ,plan loan corrections ,9 ! case ( an inadv]t5t failure relat+ to a loan to a p>ticipant f a plan1 su* failure may be self-correct$ "u subsection 7a7 accord+ to ! rules ( section #f4jg ( ,rev5ue ,proc$ure #bjah-eb 7or any successor provision71 includ+ ! provisions relat$ to :e!r a deem$ di/ribution mu/ be report$ on ,=m #ajii-,r4 #aah4 ,enhancem5t ( #djc7;b7 plans 7a7 ,9 g5]al 7#a7 ,p]mitt$ inve/m5ts ,clause 7i7 ( section #djc7;b77#g77;,a7 is am5d$ to read z foll[s3 7i7 ! am\nts to be held 9 t cu/odial acc\nt are inve/$ 9 regulat$ inve/m5t company /ock or a gr\p tru/ int5d$ to satisfy ! requirem5ts ( ,int]nal ,rev5ue ,s]vice ,rev5ue ,rul+ #ha-ajj 7or any successor guidance71 & 4 7#b7 ,con=m+ am5dm5t ,! head+ ( p>agraph 7#g7 ( section #djc7;b7 is am5d$ by /rik+ = regulat$ inve/m5t company /ock4 7#c7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to am\nts inve/$ aft] ,decemb] #ca1 #bjah4 7b7 ,am5dm5ts to ! ,inve/m5t ,company ,act ( #aidj ,section #c7;c77#aa7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;c77#aa77 is am5d$-- 7#a7 by /rik+ section #dja ( ! ,int]nal ,rev5ue ,code ( #aihf2 or & ins]t+ section #dja ( ! ,int]nal ,rev5ue ,code ( #aihf2 or any cu/odial acc\nt meet+ ! requirem5ts ( section #djc7;b77#g7 ( ! ,int]nal ,rev5ue ,code ( #aihf if 7i7 ! arrangem5t is subject to title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajja et seq471 or 7ii7 any employ] mak+ su* arrangem5t available agrees to s]ve z a fiduci>y = ! arrangem5t ) respect to ! selection ( ! arrangem5t's inve/m5ts2 or2 7#b7 by /rik+ "o or m ( su* tru/s & ins]t+ "o or m ( su* tru/s or acc\nts2 7#c7 by /rik+ ( su* ,act1 & & ins]t+ ( su* ,act12 & 7#d7 by add+ be=e ! p]iod at ! end ! foll[+3 1 & 7,d7 contributions to a cu/odial acc\nt meet+ ! requirem5ts ( section #djc7;b77#g7 ( ! ,int]nal ,rev5ue ,code ( #aihf if3 7i7 ! arrangem5t is subject to title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajja et seq471 or 7ii7 any employ] mak+ su* arrangem5t available agrees to s]ve z a fiduci>y = ! arrangem5t ) respect to ! selection ( ! arrangem5t's inve/m5ts4 7c7 ,am5dm5ts to ! ,securities ,act ( #aicc ,section #c7;a77#b7 ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;c7a77#b77 is am5d$-- 7#a7 by /rik+ o!r ?an a retirem5t income acc\nt 9 clause 7iii7 & ins]t+ o!r ?an a cu/odial acc\nt describ$ 9 section #djc7;b77#g7 ( su* ,code or a retirem5t income acc\nt2 7#b7 by /rik+ ! semicolon at ! end & ins]t+ a p]iod2 & 7#c7 by add+ at ! end ! foll[+3 ,not)/&+ any?+ to ! contr>y 9 ?is p>agraph1 ! provisions ( ?is title %all n apply to any int]e/ or p>ticipation 9 a s+le tru/ fund1 or 9 a collective tru/ fund ma9ta9$ by a bank1 :i* int]e/ or p>ticipation is issu$ 9 connection ) a cu/odial acc\nt meet+ ! requirem5ts ( section #djc7;b77#g7 ( ! ,int]nal ,rev5ue ,code ( #aihf if3 7i7 ! arrangem5t is subject to title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajja et seq471 or 7ii7 any employ] mak+ su* arrangem5t available agrees to s]ve z a fiduci>y = ! arrangem5t ) respect to ! selection ( ! arrangem5t's inve/m5ts24 7d7 ,am5dm5ts to ! ,securities ,ex*ange ,act ( #aicd ,section #c7;a77#ab7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a77#ab77 is am5d$-- 7#a7 9 subp>agraph 7,c71 by add+ be=e ! p]iod at ! end ! foll[+3 7o!r ?an a cu/odial acc\nt describ$ 9 section #djc7;b77#g7 ( ! ,int]nal ,rev5ue ,code ( #aihf72 & 7#b7 by add+ at ! end ! foll[+3 7,d7 ,not)/&+ any?+ to ! contr>y 9 subp>agraph 7,c71 ! t]m qualifi$ plan %all also include a cu/odial acc\nt meet+ ! requirem5ts ( section #djc7;b77#g7 ( ! ,int]nal ,rev5ue ,code ( #aihf if3 7i7 ! arrangem5t is subject to title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajja et seq471 or 7ii7 any employ] mak+ su* arrangem5t available agrees 9 writ+ to s]ve z a fiduci>y = ! arrangem5t ) respect to ! selection ( ! arrangem5t's inve/m5ts4 4 #aai4 ,eligibility = p>ticipation 9 retirem5t plans ,an individual %all n be preclud$ f p>ticipat+ 9 an eligible def]r$ comp5sation plan by reason ( hav+ receiv$ a di/ribution "u section #deg7;e77#i7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z 9 effect prior to ! enactm5t ( ! ,small ,bus9ess ,job ,protection ,act ( #aiif4 #abj4 ,small imm$iate f9ancial inc5tives = contribut+ to a plan 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #dja7k77#d7 is am5d$ by ins]t+ 7o!r ?an a de m9imis f9ancial inc5tive7 aft] any o!r b5efit4 7b7 ,section #djc7;b7 plans ,subp>agraph 7,a7 ( section #djc7;b77#ab71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+3 ,a plan %all n fail to satisfy clause 7ii7 solely by reason ( ! (f]+ ( a de m9imis f9ancial inc5tive = employees to elect to h ! employ] make contributions pursuant to a sal>y r$uction agreem5t44 7c7 ,exemption f prohibit$ transaction rules ,subsection 7d7 ( section #dige is am5d$ by /rik+ or at ! end ( p>agraph 7#bb71 by /rik+ ! p]iod at ! end ( p>agraph 7#bc7 & ins]t+ 1 or1 & by add+ at ! end ! foll[+ new p>agraph3 7#bd7 ! provision ( a de m9imis f9ancial inc5tive describ$ 9 section #dja7k77#d77;,a7 or #djc7;b77#ab77;,a74 4 7d7 ,am5dm5t ( ,employee ,retirem5t ,income ,security ,act ( #aigd ,subsection 7b7 ( section #djh ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajh7;b77 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ba7 ,! provision ( a de m9imis f9ancial inc5tive describ$ 9 section #dja7k77#d77;,a7 or #djc7;b77#ab77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply ) respect to plan ye>s beg9n+ aft] ! date ( enactm5t ( ?is ,act4 #aba4 ,index+ ,,ira cat*-up limit 7a7 ,9 g5]al ,subp>agraph 7,c7 ( section #bai7;b77#e7 is am5d$ by add+ at ! end ! foll[+ new clause3 7iii7 ,index+ ( cat*-up limitation ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjai1 ! #a1jjj am\nt "u subp>agraph 7,b77ii7 %all be increas$ by an am\nt equal to-- 7,i7 su* doll> am\nt1 multipli$ by 7,,ii7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjah = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 ,if any am\nt aft] adju/m5t "u ! prec$+ s5t5ce is n a multiple ( #bjj1 su* am\nt %all be r\nd$ to ! next l[] multiple ( #bjj4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to ye>s beg9n+ aft] ,decemb] #ca1 #bjai4 #abb4 ,high] cat*-up limit to apply at age #fj 7a7 ,9 g5]al 7#a7 ,plans o!r ?an simple plans ,section #dad7v77#b77;,b77i7 is am5d$ by ins]t+ ! foll[+ be=e ! p]iod3 7#aj1jjj1 9 ! case ( an eligible p>ticipant :o has atta9$ age #fj be=e ! close ( ! taxable ye>74 7#b7 ,simple plans ,section #dad7v77#b77;,b77ii7 is am5d$ by ins]t+ ! foll[+ be=e ! p]iod3 7#e1jjj1 9 ! case ( an eligible p>ticipant :o has atta9$ age #fj be=e ! close ( ! taxable ye>74 7b7 ,co/-(-,liv+ adju/m5ts ,subp>agraph 7,c7 ( section #dad7v77#b7 is am5d$ by add+ at ! end ! foll[+3 ,9 ! case ( a ye> beg9n+ aft] ,decemb] #ca1 #bjai1 ! ,secret>y %all adju/ annually ! #aj1jjj am\nt 9 subp>agraph 7,b77i7 & ! #e1jjj am\nt 9 subp>agraph 7,b77ii7 = increases 9 ! co/-(-liv+ at ! same "t & 9 ! same mann] z adju/m5ts "u ! prec$+ s5t5ce2 except t ! base p]iod tak5 into acc\nt %all be ! cal5d> qu>t] beg9n+ ,july #a1 #bjah4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 ,,ii ,pres]vation ( income #bja4 ,qualify+ longevity annuity contracts 7a7 ,9 g5]al ,n lat] ?an ! date :i* is #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all am5d ! regulation issu$ by ! ,dep>tm5t ( ! ,treasury relat+ to ,longevity ,annuity ,contracts 7#gi ,f$4 ,reg4 #cgfcc 7,july #b1 #bjad771 z foll[s3 7#a7 ,repeal #be-p]c5t premium limit ,! ,secret>y %all am5d ,q,a-#ag7;b77#c7 ( ,treas4 ,reg4 section #a4dja7;a77#i7-f & ,q,a-#ab7;b77#c7 ( ,treas4 ,reg4 section #a4djh-h to elim9ate ! requirem5t t premiums = qualify+ longevity annuity contracts be limit$ to #be p]c5t ( an individual's acc\nt balance1 & to make su* correspond+ *anges to ! regulations & relat$ =ms z are necess>y to reflect ! elim9ation ( ?is requirem5t4 7#b7 ,increase doll> limitation 7,a7 ,9 g5]al ,! ,secret>y %all am5d ,q,a-#ag7;b77#b77;i7 ( ,treas4 ,reg4 section #a4dja7;a77#i7-f & ,q,a-#ab7;b77#b77;i7 ( ,treas4 ,reg4 section #a4djh-h to increase ! doll> limitation on premiums = qualify+ longevity annuity contracts f #abe1jjj to #bjj1jjj1 & to make su* correspond+ *anges to ! regulations & relat$ =ms z are necess>y to reflect ?is increase 9 ! doll> limitation4 7,b7 ,adju/m5ts = inflation ,! ,secret>y %all am5d ,q,a-#ag7;d77#b77;i7 ( ,treas4 ,reg4 section #a4dja7;a77#i7-f to provide t1 9 ! case ( cal5d> ye>s beg9n+ on or aft] ,janu>y #a ( ! second ye> foll[+ ! ye> ( enactm5t ( ?is ,act1 ! #bjj1jjj doll> limitation 7z increas$ by subp>agraph 7,a77 w be adju/$ at ! same "t & 9 ! same mann] z ! limits are adju/$ "u section #dae7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 except t ! base p]iod %all be ! cal5d> qu>t] beg9n+ ,july #a ( ! ye> ( enactm5t ( ?is ,act1 & any increase to su* doll> limitation :i* is n a multiple ( #aj1jjj w be r\nd$ to ! next l[e/ multiple ( #aj1jjj4 7#c7 ,facilitate jo9t & survivor b5efits ,! ,secret>y %all am5d ,q,a-#ag7;c7 ( ,treas4 ,reg4 section #a4dja7;a77#i7-f1 & make su* correspond+ *anges to ! regulations & relat$ =ms z are necess>y1 to provide t1 9 ! case ( a qualify+ longevity annuity contract :i* 0 pur*as$ ) jo9t & survivor annuity b5efits = ! individual & ! individual's sp\se :i* 7 p]missible "u ! regulations at ! "t ! contract 0 orig9ally pur*as$1 a divorce occurr+ aft] ! orig9al pur*ase & be=e ! annuity paym5ts comm5ce "u ! contract w n affect ! p]missibility ( ! jo9t & survivor annuity b5efits or o!r b5efits "u ! contract1 or require any adju/m5t to ! am\nt or duration ( b5efits payable "u ! contract1 provid$ t any qualifi$ dome/ic relations ord] 7)9 ! mean+ ( section #dad7p7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 or any divorce or sep>ation in/rum5t 7)9 ! mean+ ( section #ga7;b77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf7-- 7,a7 provides t ! =m] sp\se is entitl$ to ! survivor b5efits "u ! contract2 7,b7 does n modify ! treatm5t ( ! =m] sp\se z ! b5efici>y "u ! contract :o is entitl$ to ! survivor b5efits2 or 7,c7 does n modify ! treatm5t ( ! =m] sp\se z ! measur+ life = ! survivor b5efits "u ! contract4 7#d7 ,p]mit %ort free look p]iod ,! ,secret>y %all am5d ,q,a-#ag7;a77#d7 ( ,treas4 ,reg4 section #a4dja7;a77#i7-f to ensure t su* ,q,a does n preclude a contract f includ+ a provision "u :i* an employee may resc9d ! pur*ase ( ! contract )9 a p]iod n exce$+ #ij days f ! date ( pur*ase4 7#e7 ,facilitate index$ & v>iable contracts ) gu>ante$ b5efits ,! ,secret>y %all am5d ,q,a-#ag7;d77#d7 ( ,treas4 ,reg4 section #a4dja7;a77#i7-f1 & make su* correspond+ *anges to ! regulations & relat$ =ms z are necess>y1 to provide t an annuity contract is n treat$ z a contract describ$ 9 su* ,q,a-#ag7;a77#g7 to ! ext5t t ! contract-- 7,a7 ei!r-- 7i7 is a v>iable contract "u section #hag7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf2 or 7ii7 is an index$ contract2 7,b7 provides = ! possibility ( annuity paym5t increases 7b n decreases7 bas$ on ! inve/m5t return & m>ket value ( #a or m segregat$ asset acc\nts 79 ! case ( a v>iable contract7 or bas$ on ! p]=mance ( #a or m specifi$ indexes 79 ! case ( an index$ contract72 7,c7 provides = a gu>ante$ m9imum level ( annuity paym5ts irrespective ( su* inve/m5t return1 m>ket value1 or p]=mance2 & 7,d7 9 ! ev5t ( dea? be=e ! annuity />t+ date1 provides t any dea? b5efit t is payable 9 a lump sum is equal to ! premiums paid1 )\t r$uction = inve/m5t return1 m>ket value1 index p]=mance1 surr5d] *>ges1 m>ket value adju/m5ts1 or any o!r am\nts4 ,= purposes ( ! prec$+ s5t5ce1 a d[nw>d adju/m5t to ! doll> am\nt ( annuity paym5ts %all n be treat$ z an imp]missible r$uction 9 su* paym5ts1 provid$ t ! adju/m5t is made to reflect a *ange 9 annuitant t is requir$ or p]mitt$ "u ! ,int]nal ,rev5ue ,code ( #aihf or regulations & ! adju/m5t is bas$ on reasonable actu>ial assumptions4 7b7 ,effective dates1 en=cem5t1 & int]pretations 7#a7 ,effective dates 7,a7 ,p>agraphs 7#a71 7#b71 & 7#e7 ( subsection 7a7 %all be effective ) respect to contracts pur*as$ or receiv$ 9 an ex*ange on or aft] ! date ( ! enactm5t ( ?is ,act4 7,b7 ,p>agraphs 7#c7 & 7#d7 ( subsection 7a7 %all be effective ) respect to contracts pur*as$ or receiv$ 9 an ex*ange on or aft] ,july #b1 #bjad4 7#b7 ,en=cem5t & int]pretations ,prior to ! date on :i* ! ,secret>y ( ! ,treasury issues f9al regulations pursuant to subsection 7a7-- 7,a7 ! ,secret>y %all adm9i/] & en=ce ! law 9 accordance ) subsection 7a7 & ! effective dates 9 p>agraph 7#a7 ( ?is subsection2 & 7,b7 taxpay]s may rely ^u _! reasonable good fai? int]pretations ( subsection 7a74 #bjb4 ,remove requir$ m9imum di/ribution b>ri]s = life annuities 7a7 ,9 g5]al ,p>agraph 7#i7 ( section #dja7;a71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,j7 ,c]ta9 increases 9 paym5ts "u a comm]cial annuity ,no?+ 9 ?is section %all prohibit a comm]cial annuity 7)9 ! mean+ ( section #cdje7;e77#f77 :i* is issu$ 9 connection ) any eligible retirem5t plan 7)9 ! mean+ ( section #djb7;c77#h77;,b77 f provid+ #a or m ( ! foll[+ types ( paym5ts on or aft] ! annuity />t+ date3 7i7 ,annuity paym5ts :i* increase by a con/ant p]c5tage1 appli$ n less frequ5tly ?an annually1 at a rate :i* is less ?an #e p]c5t p] ye>4 7ii7 ,a lump sum paym5t :i*-- 7,i7 results 9 a %ort5+ ( ! paym5t p]iod ) respect to an annuity or a full or p>tial commutation ( ! future annuity paym5ts1 provid$ t su* lump sum is det]m9$ us+ reasonable actu>ial me?ods & assumptions1 z det]m9$ 9 good fai? by ! issu] ( ! contract1 or 7,,ii7 accel]ates ! receipt ( annuity paym5ts :i* are s*$ul$ to be receiv$ )9 ! ensu+ #ab mon?s1 reg>dless ( :e!r su* accel]ation %ort5s ! paym5t p]iod ) respect to ! annuity1 r$uces ! doll> am\nt ( b5efits to be paid "u ! contract1 or results 9 a susp5sion ( annuity paym5ts dur+ ! p]iod be+ accel]at$4 7iii7 ,an am\nt :i* is 9 ! nature ( a divid5d or simil> di/ribution1 provid$ t ! issu] ( ! contract det]m9es su* am\nt bas$ on a reasonable comp>ison ( ! actu>ial factors assum$ :5 calculat+ ! initial annuity paym5ts & ! issu]'s exp]i5ce ) respect to ^? factors4 7iv7 ,a f9al paym5t ^u dea? :i* does n exce$ ! excess (-- 7,i7 ! total am\nt ( ! consid]ation paid = ! annuity paym5ts1 ov] 7,,ii7 ! aggregate am\nt ( prior di/ributions or paym5ts f or "u ! contract4 4 7b7 ,regulations & en=cem5t 7#a7 ,regulations ,n lat] ?an ! date :i* is #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all am5d ! regulation issu$ by ! ,dep>tm5t ( ! ,treasury relat+ to ,requir$ ,di/ributions f ,retirem5t ,plans 7#fi ,f$4 ,reg4 #ccbhh 7,june #ae1 #bjjd771 & make any necess>y correspond+ am5dm5ts to o!r regulations1 9 ord] to-- 7,a7 con=m su* regulations to ! am5dm5ts made by subsection 7a71 includ+ by elim9at+ ! types ( paym5ts describ$ 9 section #dja7;a77#i77;,j7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by subsection 7a71 f ! scope ( ! requirem5t 9 ,q,a-#ad7;c7 ( ,treas4 ,reg4 section #a4dja7;a77#i7-f t ! total future expect$ paym5ts mu/ exce$ ! total value be+ annuitiz$2 7,b7 am5d ,q,a-#ad7;c7 ( su* section #a4dja7;a77#i7-f to provide t a comm]cial annuity :i* provides an initial paym5t :i* is at lea/ equal to ! initial paym5t :i* w\ld be requir$ f an individual acc\nt pursuant to ,treas4 ,reg4 section #a4dja7;a77#i7-e w be deem$ to satisfy ! requirem5t 9 ,q,a-#ad7;c7 ( su* section #a4dja7;a77#i7-f t ! total future expect$ paym5ts mu/ exce$ ! total value be+ annuitiz$2 & 7,c7 am5d ,q,a-#ad7;e77#c7 ( ,treas4 ,reg4 section #a4dja7;a77#i7-f to provide t ! total future expect$ paym5ts "u a comm]cial annuity are det]m9$ us+ ! tables or o!r actu>ial assumptions :i* ! issu] ( ! contract actually uses 9 pric+ ! premiums & b5efits ) respect to ! contract1 provid$ t su* tables or o!r actu>ial assumptions are reasonable4 7#b7 ,effective date ,! modifications & am5dm5ts requir$ "u p>agraph 7#a7 %all be deem$ to h be5 made z ( ! date ( ! enactm5t ( ?is ,act1 & z ( su* date ! ,secret>y ( ! ,treasury %all adm9i/] & en=ce ! law ) respect to plan ye>s beg9n+ be=e1 on1 or aft] ! date ( ! enactm5t ( ?is ,act 9 accordance ) ! am5dm5ts made by subsection 7a7 & z ?\gh ! actions :i* ! ,secret>y is requir$ to take "u p>agraph 7#a7 _h be5 tak54 #bjc4 ,elim9at+ a p5alty on p>tial annuitization 7a7 ,elim9at+ a p5alty on p>tial annuitization ,! ,secret>y ( ! ,treasury %all am5d ! regulations "u section #dja7;a77#i7 ( ! ,int]nal ,rev5ue ,code ( #aihf to provide t if an employee's b5efit is 9 ! =m ( an individual acc\nt "u a def9$ contribution plan1 ! plan may all[ ! employee to elect to h ! am\nt requir$ to be di/ribut$ f su* acc\nt "u su* section = a ye> to be calculat$ z ! excess ( ! total requir$ am\nt = su* ye> ov] ! annuity am\nt = su* ye>4 7b7 ,def9itions ,= purposes ( ?is section-- 7#a7 ,total requir$ am\nt ,! t]m total requir$ am\nt1 ) respect to a ye>1 means ! am\nt :i* w\ld be requir$ to be di/ribut$ "u ,treas4 ,reg4 section #a4dja7;a77#i7-e = ! ye>1 det]m9$ by treat+ ! acc\nt balance z ( ! la/ valuation date 9 ! imm$iately prec$+ cal5d> ye> z includ+ ! value on t date ( all annuity contracts :i* 7 pur*as$ ) a portion ( ! acc\nt & f :i* paym5ts are made 9 accordance ) ,treas4 ,reg4 section #a4dja7;a77#i7-f4 7#b7 ,annuity am\nt ,! t]m annuity am\nt1 ) respect to a ye>1 is ! total am\nt di/ribut$ 9 ! ye> f all annuity contracts describ$ 9 p>agraph 7#a74 7c7 ,con=m+ regulatory am5dm5ts ,! ,secret>y ( ! ,treasury %all am5d ! regulations "u sections #djc7;b77#aj71 #djh7;a77#f71 #djh7;b77#c71 & #deg7;d77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf to con=m to ! am5dm5ts describ$ 9 subsection 7a74 ,su* con=m+ am5dm5ts %all treat all individual retirem5t plans 7z def9$ 9 section #ggja7;a77#cg7 ( su* ,code7 :i* an individual holds z ! own]1 or :i* an individual holds z a b5efici>y ( ! same dec$5t1 z "o su* plan = purposes ( ! am5dm5ts describ$ 9 subsection 7a74 ,su* con=m+ am5dm5ts %all also treat all contracts describ$ 9 section #djc7;b7 ( su* ,code :i* an individual holds z an employee1 or :i* an individual holds z a b5efici>y ( ! same dec$5t1 z "o su* contract = su* purposes4 7d7 ,effective date ,! modifications & am5dm5ts requir$ "u subsections 7a7 & 7c7 %all be deem$ to h be5 made z ( ! date ( ! enactm5t ( ?is ,act1 & z ( su* date all applicable laws %all be appli$ 9 all respects z ?\gh ! actions :i* ! ,secret>y ( ! ,treasury is requir$ to take "u su* subsections _h be5 tak54 #bjd4 ,insurance-d$icat$ ex*ange-trad$ funds 7a7 ,9 g5]al ,n lat] ?an ! date :i* is #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all am5d ! regulation issu$ by ! ,dep>tm5t ( ! ,treasury relat+ to ,income ,tax2 ,div]sification ,requirem5ts = ,v>iable ,annuity1 ,end[m5t1 & ,life ,insurance ,contracts1 #ed ,f$4 ,reg4 #hgbh 7,m>* #b1 #aihi71 & make any necess>y correspond+ am5dm5ts to o!r regulations1 9 ord] to facilitate ! use ( ex*ange-trad$ funds z inve/m5t options "u v>iable contracts )9 ! mean+ ( section #hag7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 9 accordance ) subsections 7b7 & 7c7 ( ?is section4 7b7 ,designate c]ta9 au?oriz$ p>ticipants & m>ket mak]s z eligible inve/ors ,! ,secret>y ( ! ,treasury %all am5d ,treas4 ,reg4 section #a4hag-e7;f77#c7 to provide t satisfaction ( ! requirem5ts 9 ,treas4 ,reg4 section #a4hag-e7;f77#b77;i7 ) respect to an ex*ange-trad$ fund %all n be prev5t$ by reason ( b5eficial int]e/s 9 su* a fund be+ held by #a or m au?oriz$ p>ticipants or m>ket mak]s4 7c7 ,confirm t simil>ities to o!r funds are irrelevant ,! ,secret>y ( ! ,treasury %all am5d ,treas4 ,reg4 section #a4hag-e7;f7 to confirm t1 = ,f$]al income tax purposes1 a regulat$ inve/m5t company1 p>tn]%ip1 or tru/ 7includ+ an ex*ange-trad$ fund7 t satisfies ! requirem5ts ( ,treas4 ,reg4 section #a4hag-e7;f7 7#b7 & 7#c7 %all n be treat$ z own$ by ! hold] ( a v>iable contract pursuant to ! pr9ciples ( ,rev4 ,rul4 #ha-bbe1 #aiha-b ,c4,b4 #ab1 m]ely because ano!r regulat$ inve/m5t company1 p>tn]%ip1 tru/1 or simil> inve/m5t vehicle foll[s ! same inve/m5t /rategy1 has ! same inve/m5t manag]1 or holds ! same inve/m5ts4 7d7 ,def9e relevant t]ms ,9 am5d+ ,treas4 ,reg4 section #a4hag-e7;f77#c7 9 accordance ) subsections 7b7 & 7c7 ( ?is section1 ! ,secret>y ( ! ,treasury %all provide def9itions consi/5t ) ! foll[+-- 7#a7 ,ex*ange-trad$ fund ,! t]m ex*ange-trad$ fund means a regulat$ inve/m5t company1 p>tn]%ip1 or tru/-- 7,a7 t is regi/]$ ) ! ,securities & ,ex*ange ,commission z an op5-end inve/m5t company or a unit inve/m5t tru/2 7,b7 ! %>es ( :i* c be pur*as$ or r$eem$ directly f ! fund only by an au?oriz$ p>ticipant2 & 7,c7 ! %>es ( :i* are trad$ ?r\gh\t ! day on a national /ock ex*ange at m>ket prices t may or may n be ! same z ! net asset value ( ! %>es4 7#b7 ,au?oriz$ p>ticipant ,! t]m au?oriz$ p>ticipant means a f9ancial in/itution t is a memb] or p>ticipant ( a cle>+ ag5cy regi/]$ "u section #ag;,a7b7 ( ! ,securities ,ex*ange ,act ( #aicd t ent]s into a contractual relation%ip ) an ex*ange-trad$ fund pursuant to :i* ! f9ancial in/itution is p]mitt$ to pur*ase & r$eem %>es directly f ! fund & to sell su* %>es to ?ird p>ties1 b only if ! contractual arrangem5t or applicable law precludes ! f9ancial in/itution f-- 7,a7 pur*as+ ! %>es = its own inve/m5t purposes r ?an = ! exclusive purpose ( creat+ & r$eem+ su* %>es on behalf ( ?ird p>ties2 & 7,b7 sell+ ! %>es to ?ird p>ties :o are n m>ket mak]s or o!rwise describ$ 9 ,treas4 ,reg4 section #a4hag-e7;f7 7#a7 & 7#c74 7#c7 ,m>ket mak] ,! t]m m>ket mak] means a f9ancial in/itution t is a regi/]$ brok] or deal] "u section #ae7;b7 ( ! ,securities ,ex*ange ,act ( #aicd t ma9ta9s liquidity = an ex*ange-trad$ fund on a national /ock ex*ange by be+ always ready to buy & sell %>es ( su* fund on ! m>ket1 b only if ! f9ancial in/itution is contractually or legally preclud$ f sell+ or buy+ su* %>es to or f p]sons :o are n au?oriz$ p>ticipants or o!rwise describ$ 9 ,treas4 ,reg4 section #a4hag-e7;f7 7#b7 & 7#c74 7e7 ,effective dates1 en=cem5t1 & int]pretations 7#a7 ,effective dates 7,a7 ,subsection 7b71 & ! def9itions "u subsection 7d71 %all apply to segregat$ asset acc\nt inve/m5ts made on or aft] ! date ( enactm5t ( ?is ,act4 7,b7 ,subsection 7c7 %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #aihc4 7#b7 ,en=cem5t & int]pretations ,prior to ! date t ! ,secret>y ( ! ,treasury issues f9al regulations pursuant to ?is section-- 7,a7 ! ,secret>y %all adm9i/] & en=ce ! law 9 accordance ) ?is section & ! effective dates 9 p>agraph 7#a7 ( ?is subsection2 & 7,b7 taxpay]s may rely ^u _! reasonable good fai? int]pretations ( ! prec$+ subsections ( ?is section4 ,,iii ,simplification & cl>ification ( retirem5t plan rules #cja4 ,review & report to ! ,congress relat+ to report+ & disclosure requirem5ts 7a7 ,/udy ,z soon z practicable aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor1 ! ,secret>y ( ! ,treasury1 & ! ,director ( ! ,p5sion ,b5efit ,gu>anty ,corporation %all review ! report+ & disclosure requirem5ts (-- 7#a7 title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 z applicable to p5sion plans 7z def9$ 9 section #c7b7 ( su* ,act72 & 7#b7 ! ,int]nal ,rev5ue ,code ( #aihf1 z applicable to qualifi$ retirem5t plans 7z def9$ 9 section #digd7;c7 ( su* ,code1 )\t reg>d to p>agraphs 7#d7 & 7#e7 !re(74 7b7 ,report ,n lat] ?an #ah mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor1 ! ,secret>y ( ! ,treasury1 & ! ,director ( ! ,p5sion ,b5efit ,gu>anty ,corporation1 jo9tly1 %all make su* recomm5dations z may be appropriate to ! appropriate committees ( ! ,congress to consolidate1 simplify1 /&>dize1 & improve ! applicable report+ & disclosure requirem5ts s z to simplify report+ = plans describ$ 9 subsection 7a7 & ensure t necess>y1 compreh5sible in=mation is provid$ to p>ticipants & b5efici>ies ( su* plans4 #cjb4 ,consolidation ( def9$ contribution plan notices 7a7 ,9 g5]al ,n lat] ?an #ah mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor & ! ,secret>y ( ! ,treasury %all adopt f9al regulations provid+ t a plan may1 b is n requir$ to1 consolidate #b or m ( ! notices requir$ "u sections #djd7;c77#e77;,b7 & #ead7;e77#c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajd7;c77#e77;,b7 & #bi ,u4,s4,c4 #aadd7;e77#c77 & sections #dja7k77#ab77;,d71 #dja7k77#ac77;,e71 & #dad7w77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf into a s+le notice or1 to ! ext5t provid$ by su* regulations1 consolidate su* notices ) ! summ>y plan description or summ>y ( mat]ial modifications describ$ 9 section #ajd7;b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbd7;b771 s long z ! comb9$ notice1 summ>y plan description1 or summ>y ( mat]ial modifications includes ! requir$ cont5t1 cle>ly id5tifies ! issues address$ !re91 is provid$ at ! "t & ) ! frequ5cy requir$ = ea* su* notice1 & is pres5t$ 9 a mann] t is und]/&able & does n obscure or fail to highlight important po9ts = p>ticipants & b5efici>ies4 7b7 ,consolidation ) summ>y plan description or summ>y ( mat]ial modifications ,! ,secret>y ( ,labor & ! ,secret>y ( ! ,treasury may include 9 ! regulations "u subsection 7a7 rules to ensure t1 to ! ext5t su* notices are consolidat$ ) ! summ>y plan description or summ>y ( mat]ial modifications1 ! pres5tation1 placem5t1 or prom95ce ( ! in=mation 9 su* notices %all n h ! effect ( fail+ to in=m p>ticipants & b5efici>ies reg>d+ ! in=mation 9 su* notices4 #cjc4 ,p]=mance b5*m>ks = asset allocation funds 7a7 ,9 g5]al ,n lat] ?an #f mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor %all modify ! regulations "u section #djd ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajd7 to provide t1 9 ! case ( a designat$ inve/m5t alt]native :i* conta9s a mix ( asset classes1 a plan adm9i/rator may1 b is n requir$ to1 use a b5*m>k :i* is a bl5d ( diff]5t broad-bas$ securities m>ket indices if-- 7#a7 ! bl5d is reasonably repres5tative ( ! asset class hold+s ( ! designat$ inve/m5t alt]native2 7#b7 = purposes ( det]m9+ ! bl5d's returns = #a-1 #e-1 & #aj-;cal5d> ye> p]iods 7or = ! life ( ! alt]native1 if %ort]71 ! bl5d is modifi$ at lea/ once p] ye> to reflect *anges 9 ! asset class hold+s ( ! designat$ inve/m5t alt]native2 7#c7 ! bl5d is pres5t$ to p>ticipants & b5efici>ies 9 a mann] t is reasonably design$ to be und]/&able & helpful2 & 7#d7 ea* securities m>ket index :i* is us$ = an associat$ asset class w\ld sep>ately satisfy ! requirem5ts ( su* regulations = su* asset class4 7b7 ,/udy ,n lat] ?an ,decemb] #ca1 #bjai1 ! ,secret>y ( ,labor %all deliv] a report to ! ,committees on ,ways & ,means & ,education & ! ,work=ce ( ! ,h\se ( ,repres5tatives & ! ,committees on ,f9ance & ,heal?1 ,education1 ,labor1 & ,p5sions ( ! ,s5ate reg>d+ ! effectiv5ess ( ! b5*m>k+ requirem5ts "u section #beej4djd;a-#e ( title #bi1 ,code ( ,f$]al ,regulations4 #cjd4 ,p]mit nonsp\sal b5efici>ies to roll assets to plans 7a7 ,9 g5]al ,section #djb7;c7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ab7 ,di/ributions to qualifi$ plan ( nonsp\se b5efici>y ,if1 ) respect to any portion ( a di/ribution f an eligible retirem5t plan describ$ 9 p>agraph 7#h77;,b77iii7 ( a deceas$ employee1 a direct tru/ee-to-tru/ee transf] is made to a plan or annuity describ$ 9 clause 7iii71 7iv71 7v71 or 7vi7 ( p>agraph 7#h77;,b7 ( an individual :o is a designat$ b5efici>y 7z def9$ by section #dja7;a77#i77;,e77 ( ! employee & :o is n ! surviv+ sp\se ( ! employee-- 7,a7 ! transf] %all be treat$ z an eligible rollov] di/ribution1 & 7,b7 section #dja7;a77#i77;,b7 7o!r ?an clause 7iv7 !re(7 %all apply to su* plan4 4 7b7 ,con=m+ am5dm5ts - 7#a7 #djc7;a7 plans ,subp>agraph 7,b7 ( section #djc7;a77#d7 is am5d$ by /rik+ & 7#aa7 & 7#i7 & ins]t+ 1 7#i71 7#aa71 & 7#ab74 7#b7 #djc7;b7 plans ,subp>agraph 7,b7 ( section #djc7;b77#h7 is am5d$ by /rik+ & 7#aa7 & ins]t+ 7#aa71 & 7#ab74 7#c7 #deg plans ,subp>agraph 7,b7 ( section #deg7;e77#af7 is am5d$ by /rik+ & 7#aa7 & ins]t+ 7#aa71 & 7#ab74 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions made aft] ! date ( ! enactm5t ( ?is ,act4 #cje4 ,def]ral agreem5ts 7a7 ,9 g5]al ,p>agraph 7#d7 ( section #deg7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ 1 or1 9 ! case ( a plan ( an eligible employ] describ$ 9 subsection 7e77#a77;,a71 be=e ! date on :i* ! comp5sation is 7b = ! def]ral7 available be=e ! comma at ! end4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 #cjf4 ,simplify+ #djb7;f7 notices ,n lat] ?an ,decemb] #ca1 #bjah1 ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,secret>y ( ,labor & ! ,director ( ! ,p5sion ,b5efit ,gu>anty ,corporation1 %all simplify ! model notices issu$ "u section #djb7;f7 ( ! ,int]nal ,rev5ue ,code ( #aihf s z to facilitate bett] und]/&+ by recipi5ts ( diff]5t di/ribution options & correspond+ tax consequ5ces4 ,su* model notices %all include an explanation ( ! effect ( elections on sp\sal rights4 #cjg4 ,guidance relat$ to c]ta9 ov]paym5t rec\pm5t practices 7a7 ,ov]paym5ts "u ,int]nal ,rev5ue ,code ( #aihf ,n lat] ?an ,decemb] #ca1 #bjah1 ! ,secret>y ( ! ,treasury %all fur!r modify ! ,employee ,plans ,compliance ,resolution ,sy/em 7z describ$ 9 ,rev5ue ,proc$ure #bjah-eb or any successor guidance1 & modifi$ by section #aah ( ?is ,act7-- 7#a7 to cl>ify t 9 no case %all any p]son be requir$ to seek rec\pm5t ( an inadv]t5t ov]paym5t 7z def9$ 9 su* ,sy/em7 f a p>ticipant or b5efici>y2 & 7#b7 except z o!rwise provid$ by su* ,secret>y bas$ on ! size ( ! ov]paym5t1 to treat a contribution ( an inadv]t5t ov]paym5t :i* w\ld qualify z a rollov] "u section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 or #deg7;e77#af7 ( ! ,int]nal ,rev5ue ,code ( #aihf b = ! fact t x is an ov]paym5t z a rollov] contribution = all purposes "u su* ,code4 ,no inf]5ce is int5d$ reg>d+ ! exi/5ce 9 any p>ticul> situation ( an obligation = any p]son to pay a plan = an ov]paym5t4 7b7 ,ov]paym5ts "u ,,erisa ,n lat] ?an ,decemb] #ca1 #bjah1 ! ,secret>y ( ,labor %all prescribe rules "u :i* no fiduci>y ( a plan %all h a duty "u "p #d ( title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd to seek rec\pm5t f a p>ticipant or b5efici>y ( an inadv]t5t ov]paym5t 7)9 ! mean+ ( su* t]m z us$ 9 subsection 7a771 provid$ t1 if a repaym5t is requir$1 su* ov]paym5t is paid back by ! plan sponsor or o!r p]son4 7c7 ,ov]paym5ts by ,,pbgc ,effective = ov]paym5ts made to a p>ticipant or b5efici>y aft] ,decemb] #ca1 #bjah1 ! ,p5sion ,b5efit ,gu>anty ,corporation %all n r$uce future paym5ts ) respect to ! same p>ticipant or b5efici>y by m ?an #aj p]c5t 9 rec\p+ su* ov]paym5t4 #cjh4 ,treatm5t ( cu/odial acc\nts on t]m9ation ( section #djc7;b7 plans 7a7 ,9 g5]al ,n lat] ?an #f mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all issue guidance to provide t1 if an employ] t]m9ates ! plan "u :i* am\nts are contribut$ to a cu/odial acc\nt "u subp>agraph 7,a7 ( section #djc7;b77#g7 ( ! ,int]nal ,rev5ue ,code ( #aihf-- 7#a7 ! plan adm9i/rator or cu/odian may di/ribute an individual cu/odial acc\nt 9 k9d to a p>ticipant or b5efici>y ( ! plan1 & 7#b7 ! di/ribut$ cu/odial acc\nt %all be ma9ta9$ by ! cu/odian on ! same basis z a cu/odial acc\nt to :i* section #djc7;b77#g7 ( su* ,code applies1 simil> to ! treatm5t ( fully-paid individual annuity contracts "u ,rev5ue ,rul+ #bjaa-g1 until am\nts are actually paid to ! p>ticipant or b5efici>y4 7b7 ,treatm5t ( acc\nts ,! guidance issu$ "u subsection 7a7 %all also provide t-- 7#a7 ! /atus ( ! di/ribut$ cu/odial acc\nt "u section #djc7;b77#g7 ( ! ,int]nal ,rev5ue ,code ( #aihf is g5]ally ma9ta9$ if ! cu/odial acc\nt !reaft] adh]es to ! requirem5ts ( section #djc7;b7 ( su* ,code :i* are 9 effect at ! "t ( ! di/ribution ( ! acc\nt1 & 7#b7 a cu/odial acc\nt w n be consid]$ di/ribut$ to ! p>ticipant or b5efici>y if ! employ] has any mat]ial reta9$ rights "u ! acc\nt4 ,= purposes ( p>agraph 7#b71 an employ] %all n be treat$ z reta9+ mat]ial rights ov] a cu/odial acc\nt solely because ! cu/odial acc\nt 0 orig9ally op5$ "u a gr\p contract4 7c7 ,di/ribution ^u t]m9ation 7#a7 ,9 g5]al ,p>agraph 7#aa7 ( section #djc7;b7 is am5d$ by /rik+ or at ! end ( subp>agraph 7,b71 by /rik+ ! p]iod at ! end ( subp>agraph 7,c7 & ins]t+ 1 or1 & by ins]t+ aft] subp>agraph 7,c7 ! foll[+ new subp>agraph3 7,d7 9 ! case ( a t]m9ation ( ! plan "u :i* contributions 7 made1 )\t ! e/abli%m5t or ma9t5ance ( ano!r plan "u ?is subsection4 4 7#b7 ,cu/odial acc\nts ,section #djc7;b77#g77;,a77ii7 is am5d$ by /rik+ be=e ! employee dies & ins]t+ be=e ! t]m9ation ( ! plan "u :i* contributions 7 made to ! cu/odial acc\nt 7)\t ! e/abli%m5t or ma9t5ance ( ano!r plan "u ?is subsection71 or be=e ! employee dies4 7d7 ,effective date ,! guidance issu$ "u subsections 7a7 & 7b71 & ! am5dm5ts made by subsection 7c71 %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjjh4 #cji4 ,p]mit plans to use base pay or rate ( pay calculation 7a7 ,9 g5]al ,n lat] ?an ,decemb] #ca1 #bjai1 ! ,secret>y ( ! ,treasury %all modify ,treasury ,regulation section #a4dad7s7-#a7;d77#c7 to facilitate ! use ( ! safe h>bors 9 sections #dja7k77#ab71 #dja7k77#ac71 #dja7k77#ae71 #dja7m77#aa71 #dja7m77#ab71 & #dja7m77#ac7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 & 9 ,treasury ,regulation section #a4dja7;a77#d7-c7;b71 by plans :i* use base pay or rate ( pay 9 det]m9+ contributions or b5efits4 ,su* facilitation %all include increas$ flexibility 9 meet+ ! def9ition 9 section #dad7s7 ( su* ,code 9 situations :]e ! am\nt ( ov]time comp5sation payable 9 a ye> c v>y significantly4 7b7 ,exception ,! ,secret>y ( ! ,treasury may make any modification "u subsection 7a7 inapplicable to plans ) respect to :i*1 on a consi/5t basis1 ov]time is a major compon5t ( a sub/antial portion ( ! employees eligible to p>ticipate 9 ! plan :o are n highly comp5sat$ employees 7z def9$ 9 section #dad7q7 ( ! ,int]nal ,rev5ue ,code ( #aihf74 #caj4 ,ro? ,,simple ,i,r,as 7a7 ,9 g5]al ,section #djh;,a7f7 is am5d$-- 7#a7 by /rik+ or a simple retirem5t acc\nt 9 p>agraph 7#a72 & 7#b7 by /rik+ or acc\nt 9 p>agraph 7#b74 7b7 ,con=m+ am5dm5ts ,section #djh;,a7c77#b7 is am5d$ by add+ at ! end ! foll[+ flu% s5t5ce3 ,9 apply+ ?is p>agraph to an individual on ^: behalf elective employ] contributions are made to a simple retirem5t acc\nt1 ! am\nt describ$ 9 subp>agraph 7,a7 %all be increas$ by ! am\nt ( elective employ] contributions made on behalf ( ! individual to su* acc\nt1 except to ! ext5t t su* contributions exce$ ! applicable doll> am\nt 7z def9$ 9 subsection 7p77#b77;,e77 or cause ! elective def]rals 7z def9$ 9 section #djb7;g77#c77 on behalf ( su* individual to exce$ ! limitation "u section #djb7;g77#a7 7tak+ into acc\nt subp>agraph 7,c7 !re(74 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 #caa4 ,r$uction 9 excise tax on c]ta9 accumulations 9 qualifi$ retirem5t plans 7a7 ,9 g5]al ,subsection 7a7 ( section #digd is am5d$ by /rik+ #ej p]c5t & ins]t+ #be p]c5t4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 #cab4 ,cl>ification ( cat*-up contributions ) respect to sep>ate l9es ( bus9ess 7a7 ,9 g5]al ,subp>agraph 7,b7 ( section #dad7v77#d7 is am5d$-- 7#a7 by /rik+ except t a plan & ins]t+ 8except t-- 7i7 a plan 2 7#b7 by /rik+ ! p]iod at ! end & ins]t+ 1 &2 & 7#c7 by add+ at ! end ! foll[+ new clause3 7ii7 = any ye> 9 :i* an employ] complies ) section #daj7;b7 on ! basis ( sep>ate l9es ( bus9ess pursuant to section #daj7;b77#e71 ! employ] may apply subp>agraph 7,a7 = su* ye> sep>ately ) respect to employees 9 ea* sep>ate l9e ( bus9ess4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 #cac4 ,cl>ification ( sub/antially equal p]iodic paym5t rule 7a7 ,9 g5]al ,p>agraph 7#d7 ( section #gb7t7 is am5d$ by ins]t+ at ! end ! foll[+ new subp>agraph3 7,c7 ,rollov]s to subsequ5t plan ,if-- 7i7 paym5ts describ$ 9 p>agraph 7#b77;,a77iv7 are be+ made f a qualifi$ retirem5t plan1 7ii7 a transf] or a rollov] f su* qualifi$ retirem5t plan ( all or a portion ( ! taxpay]'s b5efit "u ! plan is made to ano!r qualifi$ retirem5t plan1 & 7iii7 di/ributions f ! transf]or & transf]ee plans w\ld 9 comb9ation cont9ue to satisfy ! requirem5ts ( p>agraph 7#b77;,a77iv7 if !y _h be5 made only f ! transf]or plan1 su* transf] or rollov] %all n be treat$ z a modification "u subp>agraph 7,a77ii71 & compliance ) p>agraph 7#b77;,a77iv7 %all be det]m9$ on ! basis ( ! comb9$ di/ributions describ$ 9 clause 7iii74 4 7b7 ,nonqualifi$ annuity contracts ,p>agraph 7#c7 ( section #gb7q7 is am5d$-- 7#a7 by r$esignat+ clauses 7i7 & 7ii7 ( subp>agraph 7,b7 z subclauses 7,i7 & 7,,ii71 & by mov+ su* subclauses #b ems to ! "r2 7#b7 by r$esignat+ subp>agraphs 7,a7 & 7,b7 z clauses 7i7 & 7ii71 by mov+ su* clauses #b ems to ! "r1 & by adju/+ ! flu% language at ! end accord+ly2 7#c7 by /rik+ paym5ts4--,if & ins]t+ 8paym5ts4-- 7,a7 ,9 g5]al ,if-- 2 & 7#d7 by add+ at ! end ! foll[+ new subp>agraph3 7,b7 ,ex*anges to subsequ5t contracts ,if-- 7i7 paym5ts describ$ 9 p>agraph 7#b77;,d7 are be+ made f an annuity contract1 7ii7 an ex*ange ( all or a portion ( su* contract = ano!r contract is made "u section #ajce1 & 7iii7 ! aggregate di/ributions f ! contracts involv$ 9 ! ex*ange cont9ue to satisfy ! requirem5ts ( p>agraph 7#b77;,d7 z if ! ex*ange _h n tak5 place1 su* ex*ange %all n be treat$ z a modification "u subp>agraph 7,a77ii71 & compliance ) p>agraph 7#b77;,d7 %all be det]m9$ on ! basis ( ! comb9$ di/ributions describ$ 9 clause 7iii74 4 7c7 ,in=mation report+ ,section #fgbd is am5d$ by ins]t+ at ! end ! foll[+ new subsection3 7g7 ,special rule = report+ c]ta9 additional taxes ,no p5alty %all be impos$ "u section #fgba or #fgbb if-- 7#a7 a p]son makes a return or report "u section #fjdg7;d7 or #djh7;i7 ) respect to any di/ribution1 7#b7 su* di/ribution is made foll[+ a rollov]1 transf]1 or ex*ange describ$ 9 section #gb7t77#d77;,c7 or section #gb7q77#c77;,c71 7#c7 9 mak+ su* return or report ! p]son relies ^u a c]tification provid$ by ! taxpay] t ! di/ributions satisfy ! requirem5ts ( section #gb7t77#d77;,c77iii7 or section #gb7q77#c77;,b77iii71 z applicable1 & 7#d7 su* p]son does n h actual k t ! di/ributions d n satisfy su* requirem5ts4 4 7d7 ,safe h>bor = annuity paym5ts 7#a7 ,qualifi$ retirem5t plans ,subp>agraph 7,a7 ( section #gb7t77#b7 is am5d$ by add+ at ! end ! foll[+ flu% s5t5ce3 ,= purposes ( clause 7iv71 p]iodic paym5ts %all n fail to be treat$ z sub/antially equal m]ely because !y are am\nts receiv$ z an annuity1 & su* p]iodic paym5ts %all be deem$ to be sub/antially equal if !y are payable ov] a p]iod describ$ 9 clause 7iv7 & satisfy ! requirem5ts applicable to annuity paym5ts "u section #dja7;a77#i74 4 7#b7 ,o!r annuity contracts ,p>agraph 7#b7 ( section #gb7q7 is am5d$ by add+ at ! end ! foll[+ flu% s5t5ce3 ,= purposes ( subp>agraph 7,d71 p]iodic paym5ts %all n fail to be treat$ z sub/antially equal m]ely because !y are am\nts receiv$ z an annuity1 & su* p]iodic paym5ts %all be deem$ to be sub/antially equal if !y are payable ov] a p]iod describ$ 9 subp>agraph 7,d7 & w\ld satisfy ! requirem5ts applicable to annuity paym5ts "u section #dja7;a77#i7 if su* requirem5ts appli$4 4 7e7 ,effective dates 7#a7 ,9 g5]al ,! am5dm5ts made by subsections 7a71 7b71 & 7c7 %all apply to transf]s1 rollov]s1 & ex*anges occurr+ on or aft] ! date ( ! enactm5t ( ?is ,act4 7#b7 ,annuity paym5ts ,! am5dm5t made by subsection 7d7 %all apply to di/ributions comm5c+ on or aft] ! date ( ! enactm5t ( ?is ,act4 7#c7 ,no inf]5ce ,no?+ 9 ! am5dm5ts made by ?is section %all be con/ru$ to create an inf]5ce ) respect to ! law 9 effect prior to ! effective date ( su* am5dm5ts4 #cad4 ,cl>ification ( treatm5t ( di/ributions ( annuity contracts 7a7 ,9 g5]al ,clause 7i7 ( section #djb7;e77#d77;,d7 is am5d$ by ins]t+ aft] section #dja7;c77#a74 at ! end ( ! second s5t5ce ! foll[+3 ,a di/ribution ( an annuity contract f a tru/ or annuity plan ref]r$ to 9 ! fir/ s5t5ce ( ?is clause may be treat$ z a "p ( a lump sum di/ribution44 7b7 ,effective date ,! am5dm5t made by ?is section %all take effect z if includ$ 9 section #adja7;b77#a7 ( ! ,small ,bus9ess ,job ,protection ,act ( #aiif4 #cae4 ,cl>ification reg>d+ elective def]rals 7a7 ,9 g5]al ,n lat] ?an #f mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all issue rules cl>ify+ t employees :o h _h a sev]ance f employm5t may make-- 7#a7 elective def]rals describ$ 9 subp>agraph 7,a71 7,b71 or 7,c7 ( section #djb7;g77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7o!r ?an elective def]rals "u section #dja7k77#aa7 ( su* ,code72 7#b7 elective contributions "u an eligible def]r$ comp5sation plan describ$ 9 section #deg7;b7 ( su* ,code2 & 7#c7 to ! ext5t provid$ by ! ,secret>y1 elective def]rals describ$ 9 section #djb7;g77#c77;,d7 or #dja7k77#aa7 ( su* ,code4 ,su* rules %all only p]mit su* contributions or def]rals ) respect to paym5ts ( bona fide accumulat$ sick leave1 accumulat$ vacation pay1 sev]ance1 or back pay4 ,! ,secret>y may apply su* o!r conditions on su* contributions or def]rals z are necess>y or appropriate to c>ry out ! purposes ( ?is section4 7b7 ,treatm5t ( def]rals ,except z o!rwise det]m9$ by ! ,secret>y to be necess>y to c>ry out ! purposes ( ?is section1 ! rules describ$ 9 subsection 7a7 %all provide t ! contributions or def]rals %all1 = purposes ( section #deg & sub*apt] ,d ( *apt] #a ( subtitle ,a ( ! ,int]nal ,rev5ue ,code ( #aihf1 be treat$ z contributions or def]rals made on behalf ( active employees1 n on behalf ( =m] employees4 #caf4 ,tax treatm5t ( c]ta9 nontrade or bus9ess ,,sep contributions 7a7 ,9 g5]al ,subp>agraph 7,b7 ( section #digb7;c77#f7 is am5d$-- 7#a7 by /rik+ #djh7p7 or & ins]t+ #djh7p712 & 7#b7 by ins]t+ 1 or a simplifi$ employee p5sion 7)9 ! mean+ ( section #djh7k77 aft] #dja7k77#aa774 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 #cag4 ,all[ c]ta9 plan transf]s & m]g]s 7a7 ,am5dm5ts to ! ,int]nal ,rev5ue ,code ( #aihf 7#a7 ,9 g5]al ,section #dad is am5d$ by add+ at ! end ! foll[+ new subsection3 7aa7 ,c]ta9 plan transf]s & m]g]s 7#a7 ,9 g5]al ,"u rules prescrib$ by ! ,secret>y1 no am\nt %all be includible 9 gross income by reason (-- 7,a7 a transf] ( all or a portion ( ! acc\nt balance ( a p>ticipant or b5efici>y1 :e!r or n ve/$1 f a def9$ contribution plan describ$ 9 section #dja7;a7 or section #djc7;a7 ( an employ] to an annuity contract describ$ 9 section #djc7;b7 ( ! same employ]1 7,b7 a transf] ( all or a portion ( ! acc\nt balance ( a p>ticipant or b5efici>y1 :e!r or n ve/$1 f an annuity contract describ$ 9 section #djc7;b7 ( an employ] to a def9$ contribution plan describ$ 9 section #dja7;a7 or section #djc7;a7 ( ! same employ]1 or 7,c7 a m]g] ( a def9$ contribution plan describ$ 9 section #dja7;a7 or section #djc7;a7 ( an employ] ) an annuity contract describ$ 9 section #djc7;b7 ( ! same employ]1 s long z ! transf] or m]g] does n cause a r$uction 9 ! ve/$ b5efit or total b5efit 7includ+ non-ve/$ b5efit7 ( any p>ticipant or b5efici>y4 ,a plan or contract %all n fail to be consid]$ to be describ$ 9 sections #dja7;a71 #djc7;a71 or #djc7;b7 7z applicable7 m]ely because su* plan or contract engages 9 a transf] or m]g] describ$ 9 ?is p>agraph4 7#b7 ,di/ributions ,am\nts transf]r$ or m]g$ pursuant to p>agraph 7#a7 %all be subject to ! requirem5ts ( p>agraphs 7#c7 & 7#d7 & to ! di/ribution requirem5ts "u sections #dja7;a71 #djc7;a71 or #djc7;b7 applicable to ! transf]ee or m]g$ plan4 7#c7 ,sp\sal cons5t & anti-cutback protection ,9 ! case ( a transf] or m]g] describ$ 9 p>agraph 7#a71 am\nts 9 ! transf]ee or m]g$ plan t are attributable to ! transf]or or pr$ecessor plan %all-- 7,a7 7i7 be subject to section #dja7;a77#aa7 & section #bje ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd to ! ext5t t su* sections appli$ to su* am\nts 9 ! transf]or or pr$ecessor plan1 or 7ii7 be requir$ to satisfy ! requirem5ts ( section #dja7;a77#aa77;,b77iii77,i7 & section #bje7;b77#a77;,c77i7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd to ! ext5t t su* sections appli$ to su* am\nts 9 ! transf]or or pr$ecessor plan1 & 7,b7 be treat$ z subject to section #daa7;d77#f7 & section #bjd7;g7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd to ! ext5t t su* am\nts 7 subject to su* sections 9 ! transf]or or pr$ecessor plan4 7#d7 ,special rules ,"u rules prescrib$ by ! ,secret>y1 to ! ext5t am\nts transf]r$ or m]g$ pursuant to p>agraph 7#a7 7 o!rwise entitl$ to gr&fa!r treatm5t "u ! transf]or or pr$ecessor plan1 su* am\nts 7& income or loss attributable !reto7 %all rema9 entitl$ to su* treatm5t "u ! transf]ee or m]g$ plan4 ,! rules prescrib$ by ! ,secret>y %all require t su* am\nts be sep>ately acc\nt$ = by ! transf]ee or m]g$ plan4 ,= purposes ( ?is p>agraph1 ! t]m gr&fa!r treatm5t means any special treatm5t "u ?is title t is provid$ = prior b5efits1 prior p]iods ( "t1 or c]ta9 individuals 9 connection ) a *ange 9 ! applicable law4 7#e7 ,cons5t ,9 ! case ( a qualifi$ tru/ describ$ 9 section #dja7;a7 or #djc7;a7 & an annuity contract describ$ 9 section #djc7;b7 ) respect to :i* transf]s may be made only ) ! cons5t ( a p>ticipant or b5efici>y pursuant to ! t]ms ( su* tru/ or contract or pursuant to applicable law1 su* cons5t requirem5t %all apply )\t reg>d to ?is subsection4 ,no?+ 9 ?is subsection %all affect ! application ( contract or plan t]ms o!rwise applicable 9 ! case ( a )drawal f ! contract or plan4 4 7#b7 ,aggregation ,p>agraph 7#b7 ( section #dad7t7 is am5d$ by ins]t+ #dad7;aa71 aft] #bgd7;j714 7#c7 ,te*nical am5dm5t ,! head+ ( subsection 7z7 ( section #dad is am5d$ by /rik+ plan & ins]t+ *ur* plan4 7b7 ,am5dm5t to ! ,employee ,retirem5t ,income ,security ,act ( #aigd ,section #d ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajjc7 is am5d$ by add+ at ! end ! foll[+ new subsection3 7d7 ,?is title %all apply to any plan or contract describ$ 9 section #dad7;bb7 ( ! ,int]nal ,rev5ue ,code ( #aihf to ! ext5t necess>y to comply ) ! requirem5ts ( su* section4 4 7c7 ,effective date 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all apply to transf]s or m]g]s 9 ye>s beg9n+ aft] ! ,secret>y ( ! ,treasury prescribes rules "u section #dad7;aa7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by ?is section4 7#b7 ,rules ,! ,secret>y ( ! ,treasury %all issue rules "u section #dad7;aa7 ( ! ,int]nal ,code ( #aihf1 z s add$1 )9 #a ye> aft] ! date ( ! enactm5t ( ?is ,act4 #cah4 ,exception f requir$ di/ributions :]e aggregate retirem5t sav+s d n exce$ #ajj1jjj 7a7 ,9 g5]al ,section #dja7;a77#i71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,k7 ,exception f requir$ m9imum di/ributions dur+ life ( employee or b5efici>y :]e assets d n exce$ #ajj1jjj 7i7 ,9 g5]al ,if1 z ( a measurem5t date1 ! aggregate value ( ! entire int]e/ ( an employee "u all applicable eligible retirem5t plans does n exce$ #ajj1jjj1 !n1 ) respect to any applicable eligible retirem5t plan ( ! employee1 dur+ any succe$+ cal5d> ye> beg9n+ be=e ! next measurem5t date-- 7,i7 ! requirem5ts ( subp>agraph 7,a7 %all n apply to ! employee1 & 7,,ii7 ! requirem5ts ( subp>agraph 7,b7 %all n apply to ! employee's designat$ b5efici>y ) respect to ! designat$ b5efici>y's int]e/ 9 ! int]e/ ( ! deceas$ employee4 7ii7 ,applicable eligible retirem5t plan ,= purposes ( ?is subp>agraph1 ! t]m applicable eligible retirem5t plan means an eligible retirem5t plan 7z def9$ 9 section #djb7;c77#h77;,b77 & any o!r plan1 contract1 or arrangem5t to :i* ! requirem5ts ( ?is p>agraph apply1 b does n include any def9$ b5efit plan4 7iii7 ,measurem5t date 7,i7 ,initial measurem5t dates ,! initial measurem5t date = an employee is ! la/ day ( ! cal5d> ye> prec$+ ! e>li] (-- 7aa7 ! cal5d> ye> 9 :i* ! employee atta9s ! applicable age1 or 7bb7 ! cal5d> ye> 9 :i* ! employee dies4 7,,ii7 ,subsequ5t measurem5t dates ,if1 9 a cal5d> ye>1 an employee to :om subp>agraph 7,a7 or 7,b7 does n apply by reason ( clause 7i7 receives contributions1 rollov]s1 or transf]s ( am\nts :i* 7 n previ\sly tak5 into acc\nt 9 apply+ ?is subp>agraph1 !n ! la/ day ( t cal5d> ye> %all be a new measurem5t date & a new det]m9ation %all be made z to :e!r clause 7i7 applies to su* employee4 7,,iii7 ,special rule ,9 ! case ( an employee :o receives acc\nt /atem5ts at lea/ annually ) respect to a plan1 ! value ( ! employee's int]e/ 9 su* plan z %[n on ! la/ acc\nt /atem5t provid$ to su* employee = su* cal5d> ye> may 7at ! election ( ! employee7 be treat$ z ! value ( ! employee's int]e/ 9 su* plan on ! measurem5t date4 ,if su* la/ acc\nt /atem5t does n include all am\nts describ$ 9 subclause 7,,ii7 = su* cal5d> ye>1 ! la/ day ( ! next cal5d> ye> %all be a new measurem5t date 9 accordance ) subclause 7,,ii7 & a new det]m9ation %all be made z to :e!r clause 7i7 applies to su* employee4 7iv7 ,det]m9ation ( value ,= purposes ( ?is subp>agraph1 ! value ( an employee's int]e/ 9 a plan is ! acc\nt balance ( su* plan4 7v7 ,phase-out ( exception ,9 ! case ( an employee ^: aggregate balance describ$ 9 clause 7i7 z ( a measurem5t date exce$s ! doll> am\nt 9 effect "u su* clause by less ?an #aj1jjj1 ! requir$ di/ributions "u ?is p>agraph = cal5d> ye>s beg9n+ aft] su* measurem5t date & be=e ! next measurem5t date %all be equal to ! am\nt :i* be>s ! same ratio to ! requir$ di/ributions o!rwise det]m9$ "u ?is p>agraph z-- 7,i7 ! am\nt by :i* su* aggregate balance exce$s su* doll> am\nt s 9 effect1 be>s to 7,,ii7 #aj1jjj4 7vi7 ,co/ ( liv+ adju/m5ts ,! ,secret>y %all adju/ annually ! #ajj1jjj am\nt specifi$ 9 clause 7i7 = increases 9 ! co/-(-liv+ at ! same "t & 9 ! same mann] z adju/m5ts "u section #dae7;d72 except t ! base p]iod %all be ! cal5d> qu>t] beg9n+ ,july #a1 #bjah1 & any increase :i* is n a multiple ( #e1jjj %all be r\nd$ to ! next l[e/ multiple ( #e1jjj4 7vii7 ,plan reliance ,! plan adm9i/rator ( an applicable eligible retirem5t plan may rely on a c]tification provid$ by an employee t su* employee's int]e/ 9 o!r applicable eligible retirem5t plans does n prev5t su* employee f be+ describ$ 9 clause 7i74 ,any su* c]tification %all apply to all future ye>s 9 ! abs5ce ( a contr>y c]tification f ! employee1 & %all apply to ! curr5t ye> if made n lat] ?an ,m>* #ae ( su* curr5t ye>4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to initial measurem5t dates occurr+ on or aft] ,decemb] #ca1 #bjah4 #cai4 ,h>d%ip rules = #djc7;b7 plans 7a7 ,9 g5]al ,section #djc7;b7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ae7 ,special rules relat+ to h>d%ip )drawals ,= purposes ( p>agraphs 7#g7 & 7#aa7-- 7,a7 ,am\nts :i* may be )drawn ,! foll[+ am\nts may be di/ribut$ ^u h>d%ip ( ! employee3 7i7 ,contributions made pursuant to a sal>y r$uction agreem5t 7)9 ! mean+ ( section #caba7;a77#e77;,d774 7ii7 ,qualifi$ nonelective contributions 7z def9$ 9 section #dja7m77#d77;,c774 7iii7 ,qualifi$ mat*+ contributions describ$ 9 section #dja7k77#c77;,d77ii77,i74 7iv7 ,e>n+s on any contributions describ$ 9 clause 7i71 7ii71 or 7iii74 7,b7 ,no requirem5t to take available loan ,a di/ribution %all n be treat$ z fail+ to be made ^u ! h>d%ip ( an employee solely because ! employee does n take any available loan "u ! plan4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #djc7;b77#g77;,a77ii7 is am5d$ by /rik+ 9 ! case ( contributions made pursuant to a sal>y r$uction agreem5t 7)9 ! mean+ ( section #caba7;a77#e77;,d77 & ins]t+ subject to ! provisions ( p>agraph 7#ae74 7#b7 ,p>agraph 7#aa7 ( section #djc7;b71 z am5d$ by ?is ,act1 is fur!r am5d$-- 7,a7 by /rik+ 9 9 subp>agraph 7,b7 & ins]t+ subject to ! provisions ( p>agraph 7#ae71 92 & 7,b7 by /rik+ ! la/ s5t5ce4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 #cbj4 ,,ira pres]vation 7a7 ,in=mation made available ,! ,secret>y ( ! ,treasury %all make available to ! public ! foll[+ in=mation3 7#a7 ,an ov]view ( ! laws & regulations relat$ to individual retirem5t plans 7z def9$ 9 section #ggja7;a77#cg7 ( ! ,int]nal ,rev5ue ,code ( #aihf71 includ+-- 7,a7 limits on contributions2 7,b7 limits on d$uctions = contributions2 7,c7 rollov]s2 7,d7 m9imum requir$ di/ributions2 7,e7 non-exempt prohibit$ transactions2 & 7,f7 tax consequ5ces = e>ly di/ributions4 7#b7 ,examples ( common errors by taxpay]s ) respect to ! laws & regulations describ$ 9 p>agraph 7#a7 & in/ructions on h[ to avoid su* errors4 7b7 ,r$uction 9 excise tax on excess contributions ,section #digc is am5d$ by add+ at ! end ! foll[+ new subsection3 7i7 ,r$uction ( tax 9 c]ta9 cases 7#a7 ,r$uction ,9 ! case ( a taxpay] :o-- 7,a7 corrects1 dur+ ! correction w9d[1 an excess contribution :i* 0 made to an individual retirem5t plan & :i* result$ 9 imposition ( a tax "u p>agraph 7#a7 or 7#c7 ( subsection 7a71 & 7,b7 submits a return1 dur+ ! correction w9d[1 reflect+ su* tax 7z modifi$ by ?is subsection71 ! fir/ & second s5t5ces ( subsection 7a7 %all be appli$ by sub/itut+ #c p]c5t = #f p]c5t ea* place x appe>s4 7#b7 ,correction w9d[ ,= purposes ( ?is subsection1 ! t]m correction w9d[ means ! p]iod beg9n+ on ! date on :i* ! tax "u subsection 7a7 is impos$ ) respect to an excess contribution1 & end+ on ! e>li] (-- 7,a7 ! date on :i* ! ,secret>y initiates an audit1 or o!rwise dem&s paym5t1 ) respect to ! excess contribution1 or 7,b7 ! la/ day ( ! second taxable ye> t beg9s aft] ! end ( ! taxable ye> 9 :i* ! tax "u subsection 7a7 is impos$4 4 7c7 ,r$uction 9 excise tax on failures ,to take requir$ m9imum di/ributions ,section #digd1 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subsection3 7e7 ,r$uction ( tax 9 c]ta9 cases 7#a7 ,r$uction ,9 ! case ( a taxpay] :o-- 7,a7 corrects1 dur+ ! correction w9d[1 a %ortfall ( di/ributions f an individual retirem5t plan :i* result$ 9 imposition ( a tax "u subsection 7a71 & 7,b7 submits a return1 dur+ ! correction w9d[1 reflect+ su* tax 7z modifi$ by ?is subsection71 ! fir/ s5t5ce ( subsection 7a7 %all be appli$ by sub/itut+ #aj p]c5t = #be p]c5t4 7#b7 ,correction w9d[ ,= purposes ( ?is subsection1 ! t]m correction w9d[ means ! p]iod ( "t beg9n+ on ! date on :i* ! tax "u subsection 7a7 is impos$ ) respect to a %ortfall ( di/ributions f an individual retirem5t plan1 & end+ on ! e>li] (-- 7,a7 ! date on :i* ! ,secret>y initiates an audit1 or o!rwise dem&s paym5t1 ) respect to ! %ortfall ( di/ributions1 or 7,b7 ! la/ day ( ! second taxable ye> t beg9s aft] ! end ( ! taxable ye> 9 :i* ! tax "u subsection 7a7 is impos$4 4 7d7 ,repeal ( tax disqualification p5alty 7#a7 ,9 g5]al ,p>agraph 7#b7 ( subsection 7e7 ( section #djh is repeal$4 7#b7 ,con=m+ am5dm5ts 7,a7 ,section #djh7;e77#a7 is am5d$ by /rik+ 7#b7 or4 7,b7 ,sections #bbj7;e77#b71 #bbc7;e77#b71 & #ecj7;e7 are ea* am5d$ by /rik+ p>agraphs 7#b7 & 7#d7 ( section #djh7;e7 & ins]t+ section #djh7;e77#d74 7,c7 ,section #dige7;c77#c7 is am5d$ by /rik+ ! acc\nt ceases to be an individual retirem5t acc\nt by reason ( ! application ( section #djh7;e77#b77;,a7 or if4 7e7 ,/atute ( limitations ,subsection 7l7 ( section #feja ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 9 p>agraph 7#a71 by ins]t+ 7o!r ?an ) respect to an individual retirem5t plan7 aft] section #dige2 & 7#b7 by add+ at ! end ! foll[+ new p>agraph3 7#d7 ,individual retirem5t plans ,= purposes ( any tax impos$ by section #digc1 #digd1 or #dige 9 connection ) an individual retirem5t plan1 ! return ref]r$ to 9 ?is section %all be ! income tax return fil$ by ! p]son on :om ! tax "u su* section is impos$ = ! ye> 9 :i* ! act 7or failure to act7 giv+ rise to ! liability = su* tax occurr$4 ,9 ! case ( a p]son :o is n requir$ to file an income tax return = su* ye>-- 7,a7 ! return ref]r$ to 9 ?is section %all be ! income tax return t su* p]son w\ld h be5 requir$ to file b = ! fact t su* p]son 0 n requir$ to file su* return1 & 7,b7 ! #c-ye> p]iod ref]r$ to 9 subsection 7a7 ) respect to ! return %all be deem$ to beg9 on ! date by :i* ! return w\ld h be5 requir$ to be fil$ 7exclud+ any ext5sion !re(74 4 7f7 ,effective date 7#a7 ,9 g5]al ,subject to p>agraphs 7#b7 & 7#c71 ?is section & ! am5dm5ts made by ?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4 7#b7 ,transition provisions 7,a7 ,9 g5]al ,! am5dm5ts made by ?is section %all apply to any det]m9ation ( or affect+ liability = taxes1 int]e/1 or p5alties :i* is made on or aft] ! date ( ! enactm5t ( ?is ,act1 )\t reg>d to :e!r ! conduct ^u :i* ! det]m9ation is bas$ occurr$ be=e su* date ( enactm5t4 7,b7 ,calculation ( correction w9d[ 9 c]ta9 cases ,9 ! case ( an error t w\ld h be5 eligible = correction "u section #digc7;i7 or #digd7;e7 ( ! ,int]nal ,rev5ue ,code ( #aihf if tax _h n be5 impos$ "u #digc7;a7 or #digd7;a71 z ! case may be1 ( su* ,code be=e ! date ( ! enactm5t ( ?is ,act1 ! correction w9d[ ref]r$ to 9 sections #digc7;i7 & #digd7;e7 ( su* ,code 7z add$ by ?is section7 %all be ! p]iod beg9n+ on ! date on :i* su* tax 0 impos$ & end+ on ! e>li] (-- 7i7 ! date on :i* ! ,secret>y ( ! ,treasury initiates an audit or o!rwise dem&s paym5t ) respect to ! conduct describ$ 9 section #digc7;a7 or #digd7;a71 z ! case may be1 ( su* ,code2 or 7ii7 ! la/ day ( ! second taxable ye> t beg9s aft] ! taxable ye> 9 :i* ! date ( ! enactm5t ( ?is ,act occurs4 7#c7 ,implem5tation ,subsection 7a7 %all be implem5t$ z soon z reasonably practicable aft] ! enactm5t ( ?is ,act b 9 no case lat] ?an ! date t is #a ye> aft] su* date ( enactm5t4 #cba4 ,elim9ation ( additional tax on c]ta9 di/ributions 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #gb7t77#b71 z am5d$ by ?is ,act1 is fur!r am5d$-- 7#a7 by /rik+ or at ! end ( clause 7vii72 7#b7 by /rik+ ! p]iod at ! end ( clause 7viii7 & ins]t+ 1 or2 & 7#c7 by ins]t+ aft] clause 7viii7 ! foll[+ new clause3 7ix7 attributable to )drawal ( int]e/ or o!r income e>n$ on excess contributions 7z def9$ 9 section #digc7;b7 7)\t reg>d to ! second to la/ s5t5ce !re(77 to an individual retirem5t plan4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to any det]m9ation (1 or affect+1 liability = taxes1 int]e/1 or p5alties :i* is made on or aft] ! date ( ! enactm5t ( ?is ,act1 )\t reg>d to :e!r ! act 7or failure to act7 ^u :i* ! det]m9ation is bas$ occurr$ be=e su* date ( enactm5t4 ,not)/&+ ! prec$+ s5t5ce1 no?+ 9 ! am5dm5ts made by ?is section %all be con/ru$ to create an inf]5ce ) respect to ! law 9 effect prior to ! effective date ( su* am5dm5ts4 ,,iv ,def9$ b5efit plan re=ms #dja4 ,ca% balance 7a7 ,9 g5]al ,section #dad1 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new subsection3 7bb7 ,project$ int]e/ cr$it+ rate ,= purposes ( ?is "p1 9 ! case ( an applicable def9$ b5efit plan :i* provides v>iable int]e/ cr$it+ rates1 ! int]e/ cr$it+ rate :i* is treat$ z 9 effect & z ! project$ int]e/ cr$it+ rate %all be a reasonable projection ( su* v>iable int]e/ cr$it+ rate1 n to exce$ #f p]c5t4 4 7b7 ,am5dm5t ( ,employee ,retirem5t ,income ,security ,act ( #aigd ,section #baj ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajfj7 is am5d$ by add+ at ! end ! foll[+ new subsection3 7g7 ,project$ int]e/ cr$it+ rate ,= purposes ( ?is title1 9 ! case ( an applicable def9$ b5efit plan 7)9 ! mean+ ( section #bjc7;f77#c77 :i* provides v>iable int]e/ cr$it+ rates1 ! int]e/ cr$it+ rate :i* is treat$ z 9 effect & z ! project$ int]e/ cr$it+ rate %all be a reasonable projection ( su* v>iable int]e/ cr$it+ rate1 n to exce$ #f p]c5t4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply ) respect to ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #djb4 ,align+ use ( lookback mon?s to det]m9e int]e/ rates 7a7 ,9 g5]al ,! ,secret>y ( ! ,treasury %all modify ,treasury ,regulation section #a4dag7;e7-#a7;d77#aj77;ii7 7or any successor provision7 to provide t ! same rule applicable to modifications ( ! "t = det]m9+ ! applicable int]e/ rate %all apply to modifications ( ! "t = det]m9+ any int]e/ rate us$ by a plan to ! ext5t t ! use ( su* int]e/ rate is p]missible "u section #dag7;e77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 ,su* modifi$ regulations %all require t aft] any su* modification ( su* "t "u a plan pursuant to ?is section1 no fur!r modifications ( su* "t are to be p]mitt$ = #e ye>s ) respect to su* plan )\t ! cons5t ( ! ,secret>y ( ! ,treasury4 7b7 ,effective date ,! modifications & am5dm5ts requir$ "u subsection 7a7 %all be deem$ to h be5 made z ( ! date ( ! enactm5t ( ?is ,act1 & z ( su* date all applicable laws %all be appli$ 9 all respects z ?\gh ! actions :i* ! ,secret>y ( ! ,treasury is requir$ to take "u su* subsection _h be5 tak54 #djc4 ,corrections ( mortality tables 7a7 ,9 g5]al ,n lat] ?an #f mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all am5d ! regulation relat+ to ,mortality ,tables = ,det]m9+ ,pres5t ,value ,"u ,def9$ ,b5efit ,p5sion ,plans 7#hb ,f$4 ,reg4 #dfchh 7,octob] #e1 #bjag774 ,"u su* am5dm5t-- 7#a7 except z provid$ 9 p>agraphs 7#b7 & 7#c71 ! mortality improvem5t rates = valuation dates occurr+ dur+ #bjah %all be bas$ on ! mortality improvem5t rates 9 ! ,mortality ,improvem5t ,scale ,,mp-#bjag ,report issu$ by ! ,retirem5t ,plans ,exp]i5ce ,committee ( ! ,society ( ,actu>ies2 7#b7 = valuation dates occurr+ dur+ or aft] #bjah1 su* mortality improvem5t rates %all n assume future mortality improvem5ts at any age :i* are great] ?an 4#gh p]c5t1 & 7#c7 plan sponsors %all be p]mitt$ to elect = ! modifications "u p>agraphs 7#a7 & 7#b7 n to apply to a plan = valuation dates occurr+ dur+ #bjah4 ,! ,secret>y %all by regulation modify ! 4#gh p]c5t figure 9 p>agraph 7#b7 z necess>y to reflect mat]ial *anges 9 ! ov]all rate ( improvem5t project$ by ! ,social ,security ,adm9i/ration4 7b7 ,pres]vation ( curr5t law option ,not)/&+ ! modifications made "u subsection 7a71 ) respect to a plan = :i* sub/itute mortality tables are n us$ pursuant to ,treas4 ,reg4 section #a4dcj7;h77#c7-b = a plan ye> beg9n+ dur+ #bjah1 mortality tables det]m9$ 9 accordance ) ,treas4 ,reg4 section #a4dcj7;h77#c7-a z 9 effect on ,decemb] #ca1 #bjag1 may be us$ = purposes ( apply+ ! rules ( section #dcj ( ! ,int]nal ,rev5ue ,code ( #aihf = a valuation date occurr+ dur+ #bjah if ! plan sponsor-- 7#a7 concludes t ! use ( mortality tables det]m9$ 9 accordance ) ,treas4 ,reg4 section #a4dcj7;h77#c7-a 7)\t reg>d to any modification "u ?is section7 = ! plan ye> w\ld be adm9i/ratively impracticable or w\ld result 9 an adv]se bus9ess impact t is great] ?an de m9imis2 & 7#b7 in=ms ! plan actu>y ( ! int5t to apply ! option "u ?is subsection4 7c7 ,effective date ,! modifications & am5dm5ts requir$ "u subsections 7a7 & 7b7 %all be deem$ to h be5 made z ( ! date ( ! enactm5t ( ?is ,act1 & z ( su* date all applicable laws %all be appli$ 9 all respects z ?\gh ! actions :i* ! ,secret>y ( ! ,treasury is requir$ to take "u su* subsections _h be5 tak54 #djd4 ,cease d\ble-index+ ! v>iable rate premium 7a7 ,9 g5]al ,clause 7ii7 ( section #djjf7;a77#c77;,e7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #acjf7;a77#c77;,e77ii77 is am5d$ by /rik+ ! applicable doll> am\nt "u p>agraph 7#h7 & ins]t+ #ch4 7b7 ,con=m+ am5dm5t ,subsection 7a7 ( section #djjf ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #acjf7;a77 is am5d$ by /rik+ p>agraph 7#h74 7c7 ,te*nical am5dm5t ,clause 7i7 ( section #djjf7;a77#c77;,e7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #acjf7;a77#c77;,e77 is am5d$ by /rik+ subp>agraph 7,h7 & ins]t+ subp>agraph 7,i74 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 ,v ,re=m+ plan rules to h>monize ) ,,ira rules #eja4 ,ro? plan di/ribution rules 7a7 ,9 g5]al ,subsection 7d7 ( section #djb;,a is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#e7 ,m&atory di/ribution rules n to apply be=e dea? ,not)/&+ sections #djc7;b77#aj7 & #deg7;d77#b71 ! foll[+ provisions %all n apply to any designat$ ,ro? acc\nt3 7,a7 ,section #dja7;a77#i77;,a74 7,b7 ,! incid5tal dea? b5efit requirem5ts ( section #dja7;a74 4 7b7 ,effective date 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 ! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 7#b7 ,special rule ,! am5dm5t made by ?is section %all n apply to di/ributions :i* are requir$ ) respect to ye>s beg9n+ be=e ,janu>y #a1 #bjai1 b are p]mitt$ to be paid on or aft] su* date4 #ejb4 ,di/ributions = *>itable purposes 7a7 ,9 g5]al ,section #djb is am5d$ by add+ at ! end ! foll[+ new subsection3 7m7 ,di/ributions = *>itable purposes 7#a7 ,9 g5]al ,gross income = any taxable ye> %all n include s mu* ( ! aggregate am\nt ( qualifi$ *>itable di/ributions made ) respect to a taxpay] dur+ su* taxable ye> :i* does n exce$ ! applicable am\nt4 7#b7 ,qualifi$ *>itable di/ribution ,= purposes ( ?is subsection1 ! t]m qualifi$ *>itable di/ribution means any di/ribution f an eligible retirem5t plan describ$ 9 clause 7iii71 7iv71 7v71 or 7vi7 ( section #djb7;c77#h77;,b7-- 7,a7 :i* is made directly by ! plan to an organization describ$ 9 section #agj7;b77#a77;,a7 7o!r ?an any organization describ$ 9 section #eji7;a77#c7 or any fund or acc\nt describ$ 9 section #diff7;d77#b771 & 7,b7 :i* is made on or aft] ! date t ! individual on ^: behalf ! di/ribution is made has atta9$ age #gj4 ,a di/ribution %all be treat$ z a qualifi$ *>itable di/ribution only to ! ext5t t ! di/ribution w\ld be includible 9 gross income )\t reg>d to p>agraph 7#a74 7#c7 ,special rules 7,a7 ,9 g5]al ,rules simil> to ! rules ( p>agraphs 7,c7 & 7,e7 ( section #djh7;d77#h7 %all apply = purposes ( ?is subsection4 7,b7 ,application ( #gb ,rules simil> to ! rules ( section #djh7;d77#h77;,d7 %all apply = purposes ( ?is subsection1 by tak+ into acc\nt all am\nts 9 ! eligible retirem5t plan to :i* ! taxpay] has a non=feitable "r 9 lieu ( all am\nts 9 all individual retirem5t plans ( ! individual4 7#d7 ,applicable am\nt ,= purposes ( ?is subsection1 ! t]m applicable am\nt means ! excess (-- 7,a7 #ajj1jjj1 ov] 7,b7 ! total am\nt ( any di/ributions n includible 9 gross income ( ! taxpay] = ! taxable ye> by reason ( sections #djc7;b77#af71 #djh7;d77#h71 & #deg7;e77#ai74 4 7b7 ,s,e,ps & ,s,i,m,p,l,es ,subp>agraph 7,b7 ( section #djh7;d77#h7 is am5d$ by /rik+ 7o!r ?an a plan describ$ 9 subsection 7k7 or 7p774 7c7 #djc7;b7 plans ,section #djc7;b71 z am5d$ by ?is ,act1 is fur!r am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#af7 ,di/ributions = *>itable purposes ,! rules ( section #djb7m7 %all apply to di/ributions "u an annuity contract describ$ 9 ?is subsection4 4 7d7 #deg7;b7 plans ,subsection 7e7 ( section #deg is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ai7 ,di/ributions = *>itable purposes ,! rules ( section #djb7m7 %all apply to di/ributions "u an eligible def]r$ comp5sation plan e/abli%$ & ma9ta9$ by an employ] describ$ 9 subsection 7e77#a77;,a74 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions made aft] ,decemb] #ca1 #bjah4 #ejc4 ,surviv+ sp\se election to be treat$ z employee 7a7 ,9 g5]al ,clause 7iv7 ( section #dja7;a77#i77;,b7 is am5d$-- 7#a7 by ins]t+ or at ! election ( ! surviv+ sp\se1 aft] beg91 9 subclause 7,,ii72 & 7#b7 by add+ at ! end ! foll[+ flu% s5t5ce3 ,an election describ$ 9 subclause 7,,ii7 %all be made at su* "t & 9 su* mann] z prescrib$ by ! ,secret>y1 %all include a timely notice to ! plan adm9i/rator1 & once made may n be revok$ except ) ! cons5t ( ! ,secret>y4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to di/ributions ) respect to employees :o die aft] ,decemb] #ca1 #bjah4 #ejd4 ,rollov]s f ,ro? ,i,r,as to plans 7a7 ,9 g5]al ,subp>agraph 7,b7 ( section #djb;,a7c77#c7 is am5d$ by /rik+ %all n & ins]t+ or1 9 ! case ( a rollov] f a ,ro? ,,ira1 "u section #djh %all n4 7b7 ,regulations ,! ,secret>y ( ! ,treasury %all am5d ! regulations ) respect to rollov]s f ,ro? ,i,r,as to p]mit su* rollov]s to be made to an applicable retirem5t plan 7z def9$ 9 section #djb;,a7e77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 9 accordance ) ! am5dm5t made by subsection 7a74 7c7 ,effective date 7#a7 ,9 g5]al ,! am5dm5t made by subsection 7a7 %all apply to di/ributions made aft] ,decemb] #ca1 #bjah4 7#b7 ,effective date ,! modifications & am5dm5ts requir$ "u subsection 7b7 %all be deem$ to h be5 made z ( ,janu>y #a1 #bjai1 & z ( su* date all applicable laws %all be appli$ 9 all respects z ?\gh ! actions :i* ! ,secret>y ( ! ,treasury is requir$ to take "u su* subsection _h be5 tak54 ,,vi ,adm9i/rative provisions #fja4 ,provisions relat+ to plan am5dm5ts 7a7 ,9 g5]al ,if ?is section applies to any retirem5t plan or contract am5dm5t-- 7#a7 su* retirem5t plan or contract %all be treat$ z be+ op]at$ 9 accordance ) ! t]ms ( ! plan dur+ ! p]iod describ$ 9 subsection 7b77#b77;,a72 & 7#b7 except z provid$ by ! ,secret>y ( ! ,treasury1 su* retirem5t plan %all n fail to meet ! requirem5ts ( section #daa7;d77#f7 ( ! ,int]nal ,rev5ue ,code ( #aihf & section #bjd7;g7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd by reason ( su* am5dm5t4 7b7 ,am5dm5ts to :i* section applies 7#a7 ,9 g5]al ,?is section %all apply to any am5dm5t to any retirem5t plan or annuity contract :i* is made-- 7,a7 pursuant to any am5dm5t made by ?is ,act or pursuant to any regulation issu$ by ! ,secret>y ( ! ,treasury or ! ,secret>y ( ,labor "u ?is ,act2 & 7,b7 on or be=e ! la/ day ( ! fir/ plan ye> beg9n+ on or aft] ,janu>y #a1 #bjba4 ,9 ! case ( a gov]nm5tal plan 7z def9$ 9 section #dad7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf71 ?is p>agraph %all be appli$ by sub/itut+ #bjbc = #bjba4 7#b7 ,conditions ,?is section %all n apply to any am5dm5t unless-- 7,a7 dur+ ! p]iod-- 7i7 beg9n+ on ! date ! legislative or regulatory am5dm5t describ$ 9 p>agraph 7#a77;,a7 takes effect 7or 9 ! case ( a plan or contract am5dm5t n requir$ by su* legislative or regulatory am5dm5t1 ! effective date specifi$ by ! plan72 & 7ii7 end+ on ! date describ$ 9 p>agraph 7#a77;,b7 7z modifi$ by ! second s5t5ce ( p>agraph 7#a77 7or1 if e>li]1 ! date ! plan or contract am5dm5t is adopt$71 ! plan or contract is op]at$ z if su* plan or contract am5dm5t 7 9 effect2 & 7,b7 su* plan or contract am5dm5t applies retroactively = su* p]iod4